Kiwi Climbs after Upbeat Chinese PMI

By HY Markets Forex Blog

The New Zealand dollar rose for the second day against the greenback on Monday, driven by the upbeat manufacturing PMI from China. The kiwi rose 0.71% higher to $0.8190 against the US dollar as of 6:14am GMT, climbing for the second day from Friday’s low of $0.8083, seen in September 12.

In China, the government posted the country’s Purchasing Managers’ Index (PMI), which stood at 51.4. The reading remained unchanged from October’s figures and exceeding analysts’ forecasts of 51.1.

The HSBC Purchasing Managers Index PMI for November came in at 50.8, slightly down from October’s reading of 50.9, but higher than the bank’s estimates of 50.4 last week. The index was above the 50-threshold which separates contraction from expansion.

New Zealand’s terms of trade rose 7.5% in the third quarter, biggest advance in 40 years, the statistics department confirmed.

The Governor for Japan’s central bank, Haruhiko Kuroda said he sees some stability in the currency exchange market, which is very important for the Japanese economy.

Kuroda’s statement came in just when the country’s currency trades more than a half-year low against the US dollar, as the yen dropped to its lowest level since May 23 over the weekend.

The Japanese yen edged 0.06% lower on Monday, to 102.44 yen against the US dollar at the time of writing.

Australia

The Australian dollar rallied from its lowest level in three months. Demand for the Aussie may be resilient ahead of the Reserve Bank’s meeting tomorrow, where analysts are expecting the bank to maintain its interest rates at 2.5%.

The Aussie climbed 0.5% higher to $91.54 at the time of writing, after dropping to a low 90.56 on Nov 29, its lowest since September 4. The Australian dollar rose 0.5% to 93.78 yen.

 

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