Kiwi Rises As New Zealand Manufacturing Sector Expands

The New Zealand dollar strengthened against other major currencies in the Asian session on Friday, after data showed that the manufacturing sector in New Zealand continued to expand in August, and at a faster rate in August.

Data from Business NZ showed that the manufacturing sector in New Zealand continued to expand in August, and at a faster rate, with a Performance of Manufacturing Index score of 57.9. That’s up from 55.5 in July.

In other economic news, data from the Real Estate Institute of New Zealand showed that New Zealand’s house prices increased in August from a year ago, while the volume of sales plunged.

The national median house price index rose 8.2 percent year-over-year to NZ$530,000 in August. Median prices increased 2.3 percent, month-on-month.

On a seasonally adjusted basis, national median prices grew 7.6 percent in August from a year ago.

In the Asian trading, the NZ dollar rose to 1.6428 against the euro, from yesterday’s closing value of 1.6500. The kiwi may test resistance around the 1.60 region.

Against the U.S. and the Australian dollars, the kiwi advanced to 0.7255 and 1.1029 from early lows of 0.7221 and 1.1079, respectively. If the kiwi extend its uptrend, it is likely to find resistance around 0.74 against the greenback and 1.09 against the aussie.

The kiwi edged up to 80.12 against the yen, from an early 3-day low of 79.23. On the upside, 81.00 is seen as the next resistance level for the kiwi.

In today’s events, European Central Bank Executive Board Member Sabine Lautenschlager will participate in an exchange of views on “Banking Union: How to make existing pillars more effective?” at Eurofi Financial Forum 2017 “What way forward for the EU27 and Eurozone?” in Tallinn at 4:15 am ET.

At 4:50 am ET, External Bank of England MPC Member Gertjan Vlieghe is expected to speak about the outlook for the UK economy and monetary policy at the Society of Business Economists’ Annual Conference, in London.

Eurozone trade balance for July is due to be released at 5:00 am ET.

In the New York session, Canada existing home sales data for August, U.S. retail sales data, and industrial production for August, U.S. University of Michigan’s preliminary consumer sentiment index for September, U.S. business inventories for July, and U.S. Baker Hughes rig count data are due to be released.

by RTT Staff Writer

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