NZ dollar rises as weaker US data weighs on greenback

Tuesday 28th October 2014

The New Zealand dollar advanced after weaker-than-expected US data weighed on the US dollar.

The kiwi rose to 78.97 US cents at 8am in Wellington, from 78.75 cents at 5pm yesterday. New Zealand banks were closed yesterday for the Labour Day holiday.

In the US, Markit said its preliminary services sector purchasing managers’ index fell in October to its lowest reading since April. Other reports in the US also disappointed, with the National Association of Realtors saying its pending home sales index rose just 0.3 percent in September while the Federal Reserve Bank of Dallas said its production index fell this month. In Europe, the Ifo measure of German business confidence fell for a sixth straight month to the weakest reading since December 2012.

"With local markets closed yesterday for the Labour Day holiday, the New Zealand dollar took its cues from global themes," Bank of New Zealand currency strategist Raiko Shareef said in a note. "It was an able participant in the broader US dollar sell-off."

The New Zealand dollar advanced to 89.64 Australian cents from 89.33 cents yesterday ahead of a report on Australian consumer confidence today.

The local currency rose to 62.14 euro cents from 61.98 cents, gained to 48.96 British pence from 48.89 pence and was little changed at 85.01 yen from 85.03 yen. The trade-weighted index was recently at 76.70.

BusinessDesk.co.nz

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