The New Zealand dollar rose against the greenback after a measure of US manufacturing printed weaker than expected and as traders await the Reserve Bank of Australia's policy review, which may retain scope to cut interest rates.
The kiwi rose to 83.72 US cents from 83.52 cents in late Asian trading yesterday. The trade-weighted index was little changed at 76.83.
The US Institute for Supply Management's index of national factory activity dropped to 51.3 in March, against expectations in a Bloomberg survey that it would be little changed at 54. On Wall Street, the Standard & Poor's 500 Index fell 0.6 per cent from a record high.
"The USD shed ground across the board last night after the March US ISM index disappointed expectations," said Richard Franulovich, a senior currency strategist at Westpac Banking Corp.
Gains in the New Zealand dollar will likely be capped at 84 US cents today, he said in a note.