The New Zealand dollar found some traction against the greenback and most other currencies today on figures showing the local unemployment rate had fallen to a 16-year low of 4.3 per cent.
At 5pm in Wellington the kiwi was buying US61.08c from US60.54c at the same time yesterday having traded in a US60.47c and US61.08c.
The Australian dollar was at US70.05c (US69.55c).
Westpac currency strategist Johnathan Bayley said the kiwi had been sitting at about US60.75c before the release of the unemployment number, and US60.93c afterwards, "the best part of 20 pip reaction".
Mr Bayley said the fairly strong warning from the Reserve Bank when it hiked rates late last month and the kiwi's recent sustained move to lower levels combined with today's jobs number showing a fairly tight labour market meant, "the case is pretty much sealed for a rate hike at the next meeting".
"The price action suggests the market has reached the same conclusion," he said.
In recent sessions, signs of recovery in the US economy and the subsequently stronger US dollar have forced the kiwi down to six-month lows.
Meanwhile, the greenback was buying 112.65 yen (113.47 at 5pm yesterday), and the euro was buying US$1.1885 (US$1.1860).
On the crosses, the kiwi was buying A87.36 (A86.90c), 34.75 British pence (34.06), 68.98 yen (68.59), 0.7931 Swiss francs (0.7856), and 0.5156 euros (0.5099).
The trade-weighted index was at 63.10 (62.51), while the monetary conditions index was at plus 388 (340).
On the debt market, 90-day bank bill yields were at 5.90 per cent (5.88).
The February 2006 yields were unchanged at 5.86 per cent, July 2009s were at 6.13 per cent (6.15), and April 2013s were at 6.31 per cent (6.34).
- NZPA
<i>Currency:</i> Kiwi rallies as unemployment eases to 16-year-low
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