Kiwi gains as manufacturing, confidence point to stronger economy

The New Zealand dollar rose to a 10-day high against the greenback after manufacturing and consumer confidence surveys painted a more optimistic picture of the local economy, and reminded investors why they've had a strong appetite for the currency.

The kiwi climbed to 84.74 US cents at 5pm in Wellington, rising as high as 84.93 cents, from 84.10 cents yesterday. The trade-weighted index advanced to 76.87 from 76.17.

The local currency got a boost from strong second-tier data, with consumer confidence at a 32-month high, according to an ANZ Roy Morgan survey, and manufacturing activity at an eight-month high, based on a BNZ-Business New Zealand series.

New Zealand has been a darling among investors as it offers positive returns on governments bonds, and commentators are picking interest rates will rise later this year. The yield on the 10-year government bond was 3.91 percent at 5pm in Wellington.

"It all comes down to the fact that on a relative basis, New Zealand looks pretty good," says Chris Tennent-Brown, FX economist at Commonwealth Bank of Australia in Sydney. "There's been a lot of interest in the kiwi today, and the moves from the new data sparked a bit of interest."

The kiwi climbed to 79.16 yen at 5pm in Wellington from 78.22 yen yesterday after the Bank of Japan kept the benchmark interest rate at 0.1 percent and reaffirmed its aggressive monetary easing to achieve annual inflation of 2 percent.

Official figures showed Japan's economy unexpectedly shrank in the fourth quarter, for an annualised contraction of 0.4 percent.

The local currency rose to a new post-float high against the pound at 54.64 British pence, and trading at 54.60 at 5pm in Wellington from 53.66 pence yesterday.

Bank of England governor Mervyn King yesterday said the UK faces weak economic growth in an inflationary environment.

The kiwi climbed to 63.02 euro cents from 62.55 cents yesterday.


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Manufacturing at an 8 month high? That's like saying Sonny Bill Williams won the 10th round...

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NZ Market Snapshot


Sym Price Change
USD 0.6952 0.0000 0.00%
AUD 0.8901 0.0000 0.00%
EUR 0.5907 0.0000 0.00%
GBP 0.5276 0.0000 0.00%
HKD 5.4294 0.0000 0.00%
JPY 78.9230 0.0000 0.00%


Commodity Price Change Time
Gold Index 1278.6 -9.430 2017-10-20T00:
Oil Brent 57.8 0.550 2017-10-20T00:
Oil Nymex 51.9 0.580 2017-10-20T00:
Silver Index 17.0 -0.177 2017-10-20T00:


Symbol Open High Last %
NZX 50 8124.1 8142.3 8124.1 0.07%
NASDAQ 6633.4 6640.0 6605.1 0.36%
DAX 13057.8 13063.6 12990.1 0.01%
DJI 23205.2 23328.8 23163.0 0.71%
FTSE 7523.0 7560.0 7523.0 0.00%
HKSE 28360.0 28519.8 28159.1 1.17%
NI225 21391.0 21489.3 21448.5 0.04%
ASX 5896.1 5924.9 5896.1 0.17%