After a spike higher following strong..........>

KIWI: After a spike higher following strong domestic jobs data, kiwi dollar is

dropping in Asia hours, last plumbing session lows of 0.7312.

- New Zealand's unemployment rate fell to a nine-year low and labor

participation rate remained close to record high but a slowing in labor cost

index and increase in spare capacity in the economy means the Reserve Bank's

monetary policy is likely to remain on hold for longer. Data published by

Statistics New Zealand Wednesday showed the jobless rate fell to 4.5% in Q4, the

lowest since the December 2008 quarter, employment grew 0.5% q/q, higher than

0.3% rise expected.

- The market has one eye on the RBNZ rate decision due at 2000GMT/0700AEDT. The

bank is expected to be on hold at 1.75% in its final Monetary Policy Statement,

and penultimate Official Cash Rate (OCR) decision under the current Policy

Target Agreement with new governor Orr taking over on March 27 (after the March

22 OCR review).

- NZD/USD rose 46 pips to 0.7351 in the immediate aftermath of the data but has

trended lower since touching its peak in quiet Asia-Pac trade.