The New Zealand dollar fell as an index of the US non-manufacturing sector jumped, underpinning confidence in the economy, while a measure of private payrolls fell as expected in the wake of hurricane disruptions.
The kiwi declined to 71.64 US cents as at 8am in Wellington from 71.80 cents late yesterday. The trade-weighted index fell to 75.59 from 75.74.
The US Institute for Supply Management's non-manufacturing index climbed to 59.8 in September, the highest in 12 years and exceeding economists' expectations, up from 55.3 in August. Separately, the ADP employment report showed that US private payrolls increased by 135,000 in September, the lowest gain in 11 months and in line with economists' expectations.
The official payrolls figures due on Friday are expected to show similar weakness after Hurricanes Harvey and Irma, with a forecast of just 90,000 jobs added by US employers last month.
"US data releases continued to point to robust momentum in the economy as the Q3 data trail draws to a close," Sharon Zollner, senior economist at ANZ Bank New Zealand, said in a note.