NZ dollar gains vs. greenback, Australian dollar on commodity prices, ahead of US data
The New Zealand dollar gained against the greenback and the Australian dollar on signs prices of the nation's commodities remain elevated and as traders anticipate US data for clues to the end of monetary stimulus.
The kiwi dollar rose to 82.54 US cents from 81.79 cents at 5pm in Wellington yesterday. It rose to 90.26 Australian cents, from 90.01 cents.
Prices of dairy products, New Zealand's biggest export, rose 3.9 percent in the GlobalDairyTrade auction overnight, the biggest gain in five months, while the ANZ Commodity Price Index yesterday showed commodity prices remain elevated. Commodity prices helped push the terms of trade to a 40-year high in the third quarter and may keep them elevated in the final three months of the year.
"This remains a key support for the NZD," said Kymberly Martin, market strategist at Bank of New Zealand. "Our end year target for the NZD/USD remains at 0.8400."
The Reserve Bank of Australia left its cash rate unchanged at 2.5 percent yesterday and is seen lagging behind the RBNZ's hikes next year, putting a premium against the New Zealand dollar. Among a raft of US data due this week, payrolls on Friday are expected to show the world's biggest economy added 181,000 workers in November, down from 204,000 in October. Any signs the US economy isn't bounding ahead may slow the Federal Reserve's commitment to tapering its US$85 billion-a-month bond buying programme.
The trade-weighted index rose to 77.52 from 77.10 late yesterday. It edged up to 84.45 yen from 84.37 yen and gained to 6073 euro cents from 60.49 cents. It traded at 50.34 British pence from 49.97 pence.