Kiwi rallies on American jobs growth, stronger Chinese data
BUSINESSDESK: The New Zealand dollar rallied after US jobs data and improved manufacturing figures in China stoked optimism the global economy is on a better growth path, stoking demand for growth-linked assets such as the kiwi.
It rose to 82.66 US cents from 82.21 cents. The trade-weighted index climbed to 73.78 from 73.34.
Applications for US jobless benefits fell to a lower-than-expected 363,000 last week while the ADP Research Institute's company payrolls survey showed the biggest increase in eight months. The figures bode well for the release of the widely watched non-farm payrolls figures tonight in the US.
Yesterday, the Purchasing Managers' Index for China rose to 50.2 in October from 49.8 in September, while an HSBC survey was at an eight-month high.
"In the short term, the growth momentum is positive around the world," says Imre Speizer, market strategist at Westpac Banking Corp.
"That might persist through the rest of the year. We think that's going to be the case in the US. A seasonal pickup in economic numbers should boost risk appetite."
Mr Speizer says the kiwi may trade in a range of 82.35 US cents to 83.55 cents and he expects the currency to be higher over the course of the day.
Better manufacturing data in China bodes well for demand in New Zealand's second-largest export market after Australia.
The kiwi gained to 79.47 Australian cents from 79.19 cents and climbed to 66.28 Japanese yen from 65.80 yen. It was stronger at 63.89 euro cents from 63.40 cents and rose to 51.27 British pence from 50.95 pence.