The New Zealand dollar extended its decline, trading near a two-month low, as looming US employment data keep the prospect of a rate hike by the Federal Reserve at the front of investors' minds.
The kiwi fell to 71.48 US cents at 8am in Wellington from 71.67 cents yesterday. The trade-weighted index was little changed at 76.46 from 76.44.
Economists predict the US added 172,000 jobs last month when non-farm payrolls data are released on Friday in Washington, and investors will be watching the figures for whether the labour market in the world's biggest economy is healthy enough to warrant another rate hike later this year.
Fed officials have been relatively upbeat about the outlook in the US and economic indicators earlier this week exceeded expectations, prompting some traders to view a hike in November as an outside chance. The yield on 10-year US Treasuries rose 3 basis points to 1.74 percent.
"Expectations for a decent report already appear high, and the US OIS (overnight index swap) market now prices almost an 80 percent chance of a December Fed hike," Bank of New Zealand market strategist Kymberly Martin said in a note.
