NZ Dollar Registers a Fall

NZ Dollar Registers a FallThe New Zealand dollar reported a fall around one US cent after a surprising rise in the unemployment rate to 7.3% in the December quarter.

The NZ dollar slipped to a five month low of 69.60USc from 70.80USc just prior to the report. It was at 69.80USc at 5pm from 71.06USc at the same time yesterday.

The Australian dollar also reported to be weak in the wake of the Reserve Bank of Australia's surprise decision this week to hold off from raising interest rates.

"It is an important input into the RBNZ's thinking on when it will start hiking rates and the consensus prior to the number was April. The probability of an April hike has diminished considerably and we are now looking at June", Mr Speizer said.

The Aussie dollar registered a six-week low of $0.8772 AUD=D4 after figures showing Australia's retail sales fell surpassing speculations in December, although that came after an upwardly revised jump in November.

The Reserve Bank of New Zealand has speculated an unemployment rate of 6.6%, while the market was expecting 6.8%.

Reuters posted that weakness in currencies like the NZ dollar assisted in maintaining steadiness in the US dollar in Asia today.