The New Zealand dollar has lost a lot of ground against its Australian counterpart dropping from above 96 cents to around 94.5 - prompted by the Australian Reserve Bank cutting interest rates yesterday and today's New Zealand jobs figures.

Westpac market strategist Imre Spizer says the unemployment rate was higher than expected.

Burt he says more important was the very low wage cost which the Reserve Bank singles out as one of the conditions under which it might consider easing the OCR.

"The market has jumped all over that and pushed down the Kiwi in response," he says. "We have it at ninety-four and a half at the moment."

"It's also lost three quarters of a cent against the US, it's now sitting at just under seventy five."