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NZ Dollar Rises On New Zealand And US Data

Contributor:
Fuseworks Media
Fuseworks Media

Wellington, March 8 NZPA - The New Zealand dollar rose in response to both domestic and offshore economic data.

The big rise was during the weekend after a report showed United States employers cut fewer jobs than expected last month, boosting hopes a US economic recovery is on track.

The NZ dollar lifted further this morning after news that manufacturing sales volumes increased by a stronger-than-expected 3.1 percent in the December quarter. Also, there was a 7.4 percent increase in residential building work in the December quarter.

The NZ dollar was at US69.92c at 5pm, up from US69.66c at 8am and US68.76c at 5pm on Friday.

From its lowest level against the aussie in more than nine years on Friday morning around A76.10c, according to Reuters data, the NZ dollar rose to A76.87c at 8am and was near that at A76.80c by 5pm today.

"I think it was the manufacturing activity data that got it moving. The data did surprise a little on the stronger side of expectations," said Danica Hampton, senior currency strategist at BNZ.

"The market has been keen to sell the kiwi against the aussie over the last week and a half. It gave people thinking the kiwi-aussie cross was a one-way better a reason to pause for thought," she said.

The focus this week is the Reserve Bank of New Zealand's Monetary Policy Statement even though the bank is expected to maintain a consistent line and hold the official cash rate at 2.5 percent.

"The risk is that they say something that is unexpected and that could drive the NZ dollar higher," said Rankin Treasury.

The NZ dollar rose to 63.20 yen at 5pm from 61.34 yen at the same time on Friday and to 0.5110 euro from 0.5058 euro at 5pm on Friday.

The trade weighted index rose to 64.60 by 5pm from 63.68 at the same time on Friday.

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