The kiwi was little changed at 84.15 US cents at 8am in Wellington from 84.13 cents at 5pm yesterday.
The New Zealand dollar advanced after weaker-than-expected economic data in the US tempered expectations over how fast the Federal Reserve may start unwinding its monetary stimulus programme.
The kiwi rose to 83 US cents at 8am in Wellington, from 82.56 cents at 5pm yesterday.
The trade-weighted index increased to 78.41
from 78.14 yesterday.
The US dollar index, which measures the greenback against a basket of currencies, dropped after the Institute of Supply Management report showed the pace of growth in the US services sector slowed for a second month in December with business activity expanding at a lower rate and new orders contracting. That may weigh on expectations for how fast the Fed will taper its bond-buying programme which will this month be reduced by US$10 billion to US$75 billion.
"The USD was generally weaker overnight as the ISM non-manufacturing survey declined," David Croy, head of markets research for ANZ Bank New Zealand, said in a note. "Fed tapering is 'in the bag' but how quickly quantitative easing is eventually unwound does depend on how the US economy evolves."
The Institute for Supply Management said its services index fell to 53 last month from 53.9 in November, below expectations in a Reuters poll for a reading of 54.5 and the lowest reading since June. The gauge of business activity dipped to 55.2 from 55.5 and the read on new orders contracted to 49.4 from 56.4, however the employment gauge rose to 55.8 from 52.5.
