The kiwi rose against an Australian dollar undermined by a weak employment report today.
The New Zealand dollar was at 79.86 Australian cents at 5pm, up from 79.49 cents at 8am and 79.63 cents at 5pm yesterday.
The rise came after the Australian employment rate of 5.4 percent was announced at 1.30pm NZ time.
"The important number to look at was jobs growth and the jobs added or shedded. The consensus was for adding 5000 and the result was shedding 5500," Imre Speizer, senior markets strategist at Westpac, says.
"It was not a major surprise. I'd call it a moderate surprise."
The headline jobs number produced a textbook response, the Australian dollar falling quickly to the day's low of $US1.0533 before steadying around $US1.0545.
Interest rate market pricing for the Reserve Bank of Australia's February meeting gyrated but settled at a 38 percent probability of a 25 basis point cash rate cut.
The Australian data was "the story of the day", Mr Speizer says. "Tomorrow we have our story, which is the December quarter inflation report."
A 0.1 percent rise is expected in the consumer price index in the December quarter.
Mr Speizer says a small negative number could have negative psychological connotations which would undermine the local currency.
The kiwi was at 83.93 US cents at 5pm, compared to 84.06 cents at 5pm on Wednesday.
Earlier a 1.1 percent rise in dairy prices in a Fonterra online auction and positive results from US banks bolstered sentiment, helping the kiwi to recover from a test of lower levels last night.
The Australian unemployment rate in December of 5.4 percent was in line with expectations.
The kiwi was at 74.11 yen at 5pm from 74.02 yen yesterday. It was at 63.19 euro from 63.28 euro and at 52.48 British pence from 52.34.
The trade-weighted index was at 75.40 from 75.30.
This article is tagged with the following keywords. Find out more about MyNBR Tags
Most listened to
- Cameron Officer talks about the NBR Car of the Year 2015
- John Barnett on Brewer: ‘Boy, has he got a bit to learn’
- Tech commentator Ian Apperley on the dangers of governments cracking down on encryption
- Pumpkin Patch CEO Luke Bunt on his company's turnaround plan
- New Zealand Shareholders Association chairman John Hawkins on A2 Corporation's share purchase plan
- Duncan Bridgeman and Mark Lister discuss the latest news from the New Zealand share market
- “A very ballsy thing to do” – Rodney Hide and Kelvin Davis discuss Serco’s response to Correction’s Mt Eden Prison report
- “The response from shareholders has been overwhelming” — A2 Corporation chief executive Geoff Babidge
- Greg Gent says a board of 13 people is "prehistoric"
- Arvida CEO Bill McDonald on his company's half-year net profit
- Lance Wiggs on the future of food exports
- Paul Brislen discusses the 'snake oil' sales tactics of SalesConcepts