Kiwi dollar starts week stronger

The New Zealand dollar started the week stronger against the euro and yen, as the greenback also rose against the two major currencies after data showed the pace of United States job losses slowed last month.

Against the US dollar, the kiwi was buying US66.99c at 8am similar to its level at 5pm on Friday.

The NZ dollar was up to 0.4724 euro at the local open from 0.4668, and up to 65.41 yen from 63.95.

Crucially, the US dollar's surge against the euro bucked a recent trend in which the greenback tended to fall on good news as investors shunned it for higher-yield, higher-risk currencies and assets such as commodities and stocks.

"This is a sign that the currency markets are weaning themselves from 'the-good-news-is-bad-news for the (US) dollar' syndrome and returning to fundamental measures of economic growth and interest rate cycles," said Joseph Trevisani, chief market analyst at FX Solutions in Saddle River, New Jersey.

Data showed US employers cut 247,000 jobs in July -- far fewer than the 467,000 positions lost in June.

ANZ bank said the US dollar initially fell on the jobs news, sending the NZ dollar sharply higher -- the kiwi spiked up to around US68.20c, a new 10-month

But ANZ said those moves were short lived, with the US dollar then finding plenty of support, particularly against the euro and yen.

The kiwi held onto more of its gains against the European and Japanese currencies, after peaking at a 10-month high near 65.80 yen and a nine-month high around 0.4745 euro.

Against the Australian dollar, the kiwi was up to A80.19c at 8am from A79.98c at 5pm, while the trade weighted index was up to 62.65 from 62.22.

- NZPA