NZ dollar gains, snapping 5-day slide, after weak US manufacturing, construction data
While the US dollar index recovered from its initial selloff, the kiwi and the Australian dollars were among the best-performing major currencies overnight.
The New Zealand dollar rose, snapping a five-day decline, after weaker-than-expected US manufacturing a construction data and a key measure of risk appetite fell to its lowest level since before the global financial crisis.
The kiwi dollar rose to 69.06 US cents as at 8am from 68.56 cents late yesterday. The trade-weighted index rose to 74.97 from 74.51.
The Chicago Board Options Exchange Volatility Index (VIX), known as Wall Street's fear gauge fell as low as 9.56, the lowest since early 2007, while the US ISM manufacturing survey came in as 54.8 in April compared to expectations of 56.5, and March construction spending missed estimates with an unexpected 0.2 percent decline. While the US dollar index recovered from its initial selloff, the kiwi and the Australian dollars were among the best-performing major currencies overnight.
"After five consecutive daily losses and trading to nine-month lows against the USD, the NZD along with the AUD have rallied," traders at HiFX said in a note. "The push higher against the USD comes on the back of further disappointing US economic data."
The kiwi dollar may get a further boost this week with expectations tonight's GlobalDairyTrade auction will deliver little-changed prices, meaning whole milk powder will hold onto its 25 percent gain since early March, while employment figures on Wednesday are expected to show employment growth in the first quarter and a strong participation rate of about 70 percent.
Ahead of those events, traders will be watching today for manufacturing data from China and the Reserve Bank of Australia's latest review of interest rates, which is expected to deliver no change.
The kiwi traded at 91.70 Australian cents from 91.62 cents late yesterday and rose to 4.7562 yuan from 4.7231 yuan. The local currency rose to 77.18 yen from 76.53 yen and gained to 63.37 euro cents from 62.94 cents. It rose to 53.56 British pence from 53.10 pence.
(BusinessDesk)
Jonathan Underhill
Tue, 02 May 2017
Tue, 02 May 2017
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NZ dollar gains, snapping 5-day slide, after weak US manufacturing, construction data
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