Dollar loses ground against Aussie

The New Zealand dollar hitched a ride higher with the Australian dollar in reaction to news of stronger than expected jobs growth across the Tasman, but it lost ground on the Australian cross.

The NZ dollar was worth US69.79c at 5pm from US69.38c at 8am and US69.37c at 5pm yesterday. It fell to A78.58c from A79.26c at 5pm yesterday.

The Australian dollar was more than one US cent higher to US88.78c by 5pm from US87.49c at 5pm yesterday.

The Australian unemployment rate was a seasonally adjusted 5.3 per cent in January, compared with an unrevised 5.5 per cent in December, the Australian Bureau of Statistics said. It was the lowest rate of unemployment since February 2009.

Total employment rose by 52,700 to 10.966 million in January, seasonally adjusted. The median market forecast was for total employment to have risen by 15,000 in January and an unemployment rate of 5.6 per cent.

"The aussie jobs data was once again very strong and it has taken everything with it," Murray Hindley, chief foreign exchange dealer at ANZ.

"We've lost ground on the crosses," he said.

Tomorrow the New Zealand market has retail sales data for the December quarter to digest.

Investors were also watching tomorrow's European Union summit on a possible bailout of debt-strapped Greece. The meeting was expected to reach a political agreement on helping Greece, with details worked out at a meeting of finance ministers in Brussels on Monday, Reuters reported.

The NZ dollar was at 0.5062 euro at 5pm from 0.5041 at 5pm yesterday. It was at 62.72 yen from 62.23 yen yesterday.

- NZPA