NZ dollar little changed ahead of Aust employment data

The New Zealand dollar was little changed in the New York and London sessions overnight amid vacillating risk appetite, with today's Australian labour data expected to show the so-called "lucky country's" employment climbed last month.

Investors' appetite for higher-yielding, riskier assets waxed and waned offshore as US equities shrugged off weak Asian trading to push higher on renewed optimism for the global recovery.

Still, 'safe haven' currencies such as the greenback were supported by the prospect the Federal Reserve won't put off tightening monetary policy even if American joblessness remains high.

Traders in Australasia will be watching for Australia's employment data out this afternoon, which is expected to show a further 10,000 workers joined the workforce last month, according to a Reuters survey.

"Australian employment will be the key data for the markets to focus on, as they're generally undecided on which way the RBA will go in February," said Mike Jones, strategist at Bank of New Zealand, referring to the Reserve Bank of Australia.

"If it comes in better than expected, a bit more tightening will be priced in and that should add support for the Aussie and kiwi dollars."

The kiwi slipped to 73.96 US cents from 74.05 cents yesterday, and declined to 66.78 on the trade-weighted index, or TWI, a measure of the currency against a basket of five trading partners, from 66.92.

It was little changed at 80.09 Australian cents from 80.11 cents yesterday, and dropped to 67.58 yen from 67.72 yen.

It fell to 50.99 euro cents from 51.14 cents yesterday, and decreased to 45.41 pence from 45.67 pence. Jones said the currency may trade between 73.60 US cents and 74.40 cents today as it waits in a holding pattern for data in America and Europe to be released.

The European Central Bank will review its benchmark interest rate today, and while it's expected to keep rates on hold, investors will continue to monitor its unwinding of liquidity measures.

German inflation, and US retail sales and ongoing jobless claims will also be watched.

The Fed's 'Beige Book' was more upbeat than economists expected, keeping the same rhetoric as previous statements on the signs of growth in the world's largest economy.