The New Zealand dollar fell before the release of fourth-quarter gross domestic product that's expected to show the pace of growth has slowed, while the greenback gained against most major currencies.
The New Zealand dollar fell to 81.45 US cents at 8am from 81.89 cents at 5pm yesterday.
A Reuters survey of 11 economists is for GDP to have grown 0.6 per cent in the fourth quarter, slowing from a pace of 0.8 per cent three months earlier. The slowdown is attributed to a drop in manufacturing, offset by strong farming output and improving retail trade and construction.
"Anything over 0.6 per cent we may well get a lift in the New Zealand dollar," said Dan Bell, currency strategist at HiFX.
The data comes a day after government figures showed the current account deficit narrowed more than expected in the fourth quarter, amid record exports of dairy products and smaller dividends paid out to foreigners.