By TraderVox.com
Tradervox.com (Dublin) – The Australian dollar gained against major peers today as China manufacturing industry showed some signs of improvement. The New Zealand dollar, which is the other south pacific currency that has showed increment against major peers, was also boosted by the China’s manufacturing improvement. The two currencies gained against the dollar after a report from Manufacturing Purchasing and managers’ index showed an expansion in February for the third month in a row.
The demand for the Australian dollar declined a bit, after the nation’s building approvals climbed less than it had been forecasted in January. The gains were further tampered by the falling of business investment for the fourth quarter. The New Zealand dollar’s growth was limited by the dropping of the country’s terms of trade index. This also resulted to a decline in the Asian stock.
According to Sue Trinh who is a senior Foreign Exchange Strategist at Royal Bank of Canada in Hong Kong, the firmness of the two currencies shows some stabilization of numbers lends support to sentiments that China will have a soft economic recovery over the short term.
Australian dollar gained 0.2 percent against the dollar to settle at $1.0757. Against the yen, the Aussie was little changed at 87.09 yen per AUD. It had earlier advanced against the yen by 0.4 percent. The New Zealand dollar was exchanging at 83.57 U.S cents against the dollar which is 0.2 percent increment. Against the yen, the New Zealand dollar dropped from 67.69 yen to settle at 67.69 yen.
The economic status in the south pacific nation also led to the increase of the Australian 10-year bonds by 0.1 percent to reach 4.07 percent. On the other hand, the New Zealand two-year rate increased by two basis points to reach 3.095 percent.
All these changes in rates were seen after the Purchasing Managers Index increased to 51.0 last month up from 50.5 in January. This statement was released today in China by the nation’s Statistics Bureau and Logistic Federation. The forecast that was given by many economists was an increase to 50.9 which closely relates to the 51.0 recorded.
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