Kiwi retreats after mixed New Zealand labor data

The New Zealand dollar fell on Wednesday against the US dollar following mixed labor data in the fourth quarter, nudging kiwi lower after yesterday's gains. 

NZD/USD dipped to 0.7315 from the opening of 0.7338, with a session-high at 0.7345, and a low at 0.7315. 

New Zealand's unemployment rate fell to 4.5% in the fourth quarter, beating expectations of 4.7%, and down from 4.6% in the third quarter, while the employment change rose 0.5%, slowing down from the previous reading's 2.2% rise, while analysts expected a 0.4% increase. 

Labor costs rose just 0.4%, down from 0.7% and missing expectations of 0.7%, which hurt inflation prospects and in turn dragged the kiwi lower. 

US stock indices stopped their losses yesterday and ended higher after massive losses sustained earlier this week, in turn underpinning the greenback against rivals.