KEY POINTS:
The New Zealand dollar finished near its lows after swinging during the session under the influence of an Aussie dollar knocked by poor Australian employment data.
New Zealand's own labour market figures, showing a slight increase in the unemployment rate to 3.8 per cent, had little impact, one foreign exchange dealer said.
By 5.50pm, the kiwi was at US66.55c from US66.97c at 5pm yesterday, and at A86.84c from A86.71c.
"It's been a pretty wild day," the dealer said, noting the kiwi traded between US66.46c and US66.94c.
"The move was all hinged on the Aussie employment data which came out worse than expected and has seen the Aussie sold aggressively from US77.09c down to the low US76.50c," he said.
"Tonight I think both kiwi and Aussie are vulnerable to the downside and I think they're a sell on any rally."
Australian employment fell a surprise 32,100 in October, against expectations of a rise of 7500. The unemployment rate also fell, to a 30-year low of 4.6 per cent from 4.8 per cent.
In New Zealand, unemployment rose by 5.5 per cent to 83,000 over the September quarter, while people in employment fell by 9000, or 0.4 per cent.
The market interpreted the slightly larger than expected rise in unemployment as likely to lessen the chance of a Reserve Bank interest rate rise in the near future.
Reserve Bank governor Alan Bollard repeated his concerns today about New Zealanders' love of housing at the expense of other types of investment, which he has tried to dampen by raising rates.
The US dollar shuffled within sight of a six-week low against the euro as investors looked ahead to US trade data later in the session that is expected to show a slight improvement in the country's gaping deficit.
Analysts said the data may draw more attention this time as Democrats, who seized control of Congress for the first time in 12 years in the US mid-term elections, are seen taking a tougher stance on China when it comes to trade.
5.40pm today 5pm Wednesday
NZ dlr/US dlr US66.58c US66.97c
NZ dlr/Aust dlr A86.84c A86.71c
NZ dlr/euro 0.5216 0.5242
NZ dlr/yen 78.48 78.77
NZ dlr/stg 34.96p 35.13p
NZ TWI 66.58 66.84
Australian dollar US76.67 US77.24
Euro/US dollar 1.2764 1.2776
US dollar/yen 117.86 117.63
- NZPA