Kiwi falls away from three-month high

The New Zealand dollar fell on Wednesday for the second straight session after hitting a three-month high yesterday, as the currency is weighed by weak employment data from New Zealand, which could impact the Central Bank's decisions there.
 
NZD/USD last traded at 0.7257, down from the opening of 0.7290, with an intraday high at 0.7295, and a low at 0.7251.
 
Earlier employment data from New Zealand for the fourth quarter of last year showed the jobless rate up to 5.2% from 4.9%, above expectations of 4.8%, while the employment change rose 0.8%, sharply down from the previous reading's 1.3%, already revised lower from 1.4%.
 
Weak employment data could force the Central Bank to keep its monetary policy unchanged unlike recent expectations that pointed to a possible rate hike, specially after inflation rose to the Bank's safe range between 1% and 3%, but the dismal employment data dampened these expectations and pushed the kiwi lower.
 
On the other hand, the U.S. dollar rebounded today from a three-month low, heaping pressure on the New Zealand dollar.
 
The dollar index, gauging the greenback versus an array of six major currencies, rose to 99.89 from the opening of 99.54, with an intraday high at 99.91, and a low at 99.50.