The New Zealand dollar edged up as investors latched on to weaker than expected US employment data, after figures earlier this week showed soft economic growth in the first three months of the year.
The kiwi increased to 86.36 US cents at 8am in Wellington from 86.13 cents yesterday. The trade-weighted index advanced to 80.27 from 80.01.
Markets largely ignored positive consumer spending and manufacturing news in the world's biggest economy, focusing instead on an unexpected rise in initial jobless claims ahead of April's non-farm payrolls report on Friday in Washington. Tepid first-quarter growth in the US sparked concerns about the strength of its economy, though forward-looking indicators still show signs of life.
"There's a small bias towards responding to negative news," said Imre Speizer, market strategist at Westpac Banking Corp. "That will overall keep the US dollar weak and push up the kiwi/US."
Westpac's Speizer said the kiwi may trade between 86 US cents and 86.40 cents today ahead of the US payrolls report.
