The New Zealand dollar continued to advanced to its fourth day in a row against the US dollar on Tuesday, after reaching its highest level since November 20 in the previous session and driven by the upbeat trade balance report from China.
The New Zealand dollar rose 0.10% higher at $0.8289 against the greenback as of 6:15am GMT on Tuesday, heading toward the last sessions highs at $0.8320. The kiwi climbed to almost a three-week high on Monday, driven by the upbeat Chinese trade balance data, which showed a surplus of $33.8 billion in November.
China’s industrial production eased to 10.0% lower, compared to the previously recorded 10.3% in November on an annual basis and below analysts’ forecast of 10.1%.
The country’s retail sales for November showed a rising trend, rising 13.7% higher than the same period last year.
According to a statement from the Deputy Governor of Reserve Bank of New Zealand, Grant Spencer, new residential construction loans will be exempt from the loan-to-value (LVR) restrictions introduced by the Reserve Bank in October.
“The Reserve Bank has recently consulted with the building industry and banks on the impact of LVR restrictions on residential construction activity,” Spencer said in the statement. “While high LVR construction lending is only around 1% of total residential lending, it finances around 12% of residential building activity.”
On Friday, the Bureau of Labour Statistics posted its jobs release for November, showing an addition of 203,000 new employees in the US economy during the month.
The Non-farm payrolls data revealed 203,000 new jobs were added in November, up from the 200,000 recorded in the previous month and exceeding analysts’ forecast of 185,000, according to the Bureau of Labour Statistics.
Market participants remain focused on the Federal Reserve’s (Fed) next meeting; which would likely hint when the central bank could to begin taper its asset-purchases scheme.
Federal Reserve Bank of St. Louis President James Bullard said that the improvement in the jobs market is one of the key conditions for tapering.
“A small taper might recognize labor market improvement while still providing the Committee the opportunity to carefully monitor inflation during the first half of 2014,” Bullard said. “Should inflation not return toward target, the Committee could pause tapering at subsequent meetings.”
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