The New Zealand dollar came close to US77c, a level it last reached more than 27 months ago, boosted by better than expected overseas manufacturing data.The kiwi peaked early today above US76.90c, then fell back to US 76.63c by 8am, little changed from th
The New Zealand dollar came close to US77c, a level it last reached more than 27 months ago, boosted by better than expected overseas manufacturing data.
The kiwi peaked early today above US76.90c, then fell back to US 76.63c by 8am, little changed from the level at 5pm yesterday.
BNZ markets strategist Mike Jones said sentiment toward growth-sensitive currencies such as the NZ dollar had been bolstered in the past 24 hours by a slew of upbeat global manufacturing reports.
Manufacturing data out of China, the US, and the UK all topped analyst expectations, underpinning modest gains in equity markets and commodity prices overnight, Mr Jones said.
Yesterday's ANZ commodity price index, which showed world prices for a trade weighted basket of New Zealand commodities rose 3.5 percent to an all-time high in October, probably further underpinned the NZ dollar against the greenback.
It was likely the Reserve Bank of Australia's interest rate announcement at 4.30pm today (NZT) would be the focus for the NZ and Australian dollars, Mr Jones said.
Meanwhile, markets are braced for more monetary easing from the US Federal Reserve, which was likely to announce this week a fresh round of quantitative easing under which the US central bank would buy bonds and essentially flood the economy with US dollars in an attempt to revitalise it.
Traders said most investors were sidelined ahead of the Fed decision, and four other major policy decisions this week - in Australia, the euro zone, Britain and Japan - and with key US jobs data due on Friday (local time).
The NZ dollar also pushed to a six-week high around 0.5530 euros early today, then eased to 0.5518 at 8am from 0.5478 at 5pm yesterday, while it was little changed at 61.73 yen.
Against the Australian dollar, the kiwi rose to A77.77c at 8am from A77.54c at 5pm, while the trade weighted index was up to 67.88 from 67.73.
