The New Zealand dollar got a lift today from better-than-expected unemployment data.
The unemployment rate rose to a six-year high of 5 per cent in the March quarter, but it was a smaller rise than economists forecast, which suggested to some that the Reserve Bank may not cut interest ratesfurther.
The NZ dollar rose from US58.30c to US59.10c on the news. It was back US58.85c by 5pm, which was still up from US57.75c yesterday.
The NZ dollar rose to A78.75c but when Australian unemployment data was also better than expected it retreated to A78.10c by 5pm.
Dealers said Prime Minister John Key did not give away much in a pre-budget speech today.
Westpac senior market strategist Imre Speizer said people were being cautious about reading too much into one unemployment number but both the Australian and New Zealand unemployment numbers were significantly better than expected.
"It allows for the possibility of them (central banks) pausing," he said.
The NZ dollar was at 0.4420 euro at 5pm from 0.4352 yesterday. It rose to 57.87 yen from 56.65 yesterday. The trade weighted index rose to 57.66 from 56.94.
The NZ dollar reached a three-week high today and the Australian dollar reached a seven month high against the US dollar.
