Better than expected unemployment data released today saw the New Zealand dollar spike against both the United States and Australian currencies.
At 5pm, the kiwi was at US71.24c (from US70.47c at 5pm last night), having gained 28 basis points on its opening level of US70.96c.
Against the aussie, the kiwi was at A91.02c (A90.90c), up 36 basis points on its opening level of A90.66c.
BNZ currency strategist Sue Trinh said the kiwi was propped up by stronger than expected employment data released today.
"That data has also made a rate hike by the Reserve Bank in March or April more likely," Ms Trinh told NZPA today.
The Reserve Bank's official cash rate is currently 6.5 per cent.
"Also, the US dollar has been weaker across the board," she said.
Statistics New Zealand today confirmed the nation's unemployment rate tumbled to a 20-year low of 3.6 per cent in the December quarter, down on 3.8 per cent unemployment recorded in the September quarter.
Meanwhile the greenback was at 105.84 yen (105.64), and the euro was at US$1.2878 (US$1.2815). The aussie was fetching US78.25c (US77.55c).
On its other crosses the kiwi was buying 0.5532 euro (0.5500), 38.13 British pence (37.89), 75.40 yen (74.46) and 0.8603 Swiss francs (0.8571).
The monetary conditions index was at plus 980 (937), while the trade weighted index (TWI ) was at 69.66 (69.08).
On the money markets, 90-day bank bill yields were at 6.86 per cent (6.84), November 2006 bond yields were at 6.36 per cent (6.37), July 2009s were at 6.11 per cent (6.08) and April 2015s were at 5.94 per cent (5.89).
- NZPA
<EM>Currency:</EM> NZD spikes against aussie, USD on unemployment data: dealer
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