SYDNEY: The New Zealand dollar rose on Thursday after data showed the economy grew faster than expected last quarter, though the details of the report were not as strong as the headline suggested.

The kiwi initially gained one third of a cent to $0.8264 after data showed a measure of gross domestic product rose 1.4 percent versus forecasts of 1.1 percent for the third quarter.

It then faded back to $0.8237, still showing a loss of 0.4 percent in the past 24 hours following the Federal Reserve's decision to trim its bond buying by $10 billion.