Wellington, Dec 7 NZPA - The New Zealand dollar consolidated at lower levels today after the US dollar rose during the weekend on data showing the United States lost far fewer jobs than expected last month.

By 5pm today the NZ dollar was buying US71.71c from US71.55c at 8am and US72.22c at 5pm on Friday. It fell as low as US71.35c during the weekend.

The US dollar posted its best performance against a basket of currencies in nearly a year overnight Friday, after the data showed US employers cut 11,000 non-farm jobs last month while markets had expected job losses of 130,000.

The surprisingly strong report stoked speculation the Federal Reserve may consider raising US interest rates from record lows sooner than initially thought. That would increase returns on US dollar-denominated assets and make them more attractive again to investors.

The NZ dollar peaked at a two-week high against the Japanese currency during the weekend at 64.89 yen, as it climbed from 63.66 yen at Friday's local close. By 5pm today it was at 64.40 yen.

The NZ dollar also lifted to 0.4816 euro from 0.4795 on Friday, and was little changed against the Australian dollar at A78.34c.

The trade weighted index was 64.22 from 64.16 on Friday.

BNZ Capital senior strategist Danica Hampton said the key local focus this week was Thursday's Reserve Bank interest rate decision.

Wholesale trade data today appeared to show stabilising activity in the sector in the third quarter following a sizeable contraction during the recession and a similar conclusion is expected in a survey of the manufacturing sector tomorrow.

All 19 economists in a Reuters poll expect the official cash rate to be held at 2.5 percent on Thursday.

"The markets will again scrutinise the final paragraph of the media statement for any deviation from the expectation that rates will be held until the second half of 2010," Westpac said.