New Zealand Dollar Strengthens Against Majors
The New Zealand dollar climbed against other major currencies on Monday in Asia amid a rise in Asian stocks.
Asian stocks are trading higher today on the back of a buoyant report on U.S. manufacturing activity.
The U.S. Institute for Supply Management said on Friday that its index of activity in the manufacturing sector rose to 55.3 in June from 53.5 in May, with a reading above 50 indicating growth in the sector. The increase came as a surprise to economists, who had expected the index to dip to a reading of 52.0.
Thus far, Japan’s Nikkei 225 index rose 1.05 percent, New Zealand’s NZX 50 index was up 0.17 percent, Australia’s S&P 200 index and the All Ordinaries index added 0.73 percent each, Hong Kong’s Hang Seng advanced 1.62 percent, China’s Shangai composite index gained 0.88 percent, South Korea’s Kospi climbed 0.99 percent and Taiwan’s main index edged up 0.70 percent.
Investors sentiment was also boosted after Euro-zone finance ministers on Saturday approved the disbursement of the fifth tranche of the current Greek Loan Facility by 15 July following approval by the IMF Board.
The NZ dollar spiked up to a fresh 1-month high of 67.15 against the yen with 68.00 seen as the next upside target level. Presently, the kiwi-yen pair is worth 67.12, compared to Friday’s close of 66.94.
The kiwi climbed to a 4-day high of 0.8310 against the U.S. dollar. The pair that ended last week’s deals at 0.8281 is now quoted at 0.8303. The next upside target level for the kiwi is seen at 0.83.
Against the euro and the aussie, the kiwi is presently trading at 1.7533 and 1.2939, respectively. If the kiwi advances further, it may target 1.72 against the euro and 1.285 against the aussie. At Friday’s close, the kiwi traded at 1.7557 against the euro and 1.3027 versus the aussie.
Retail sales in Australia were down a seasonally adjusted 0.6 percent in May compared to the previous month, the Australian Bureau of Statistics said, coming in at A$20.611 billion. That was well below forecasts for an increase of 0.3 percent following the upwardly revised 1.2 percent gain in April.
A separate report from Australia revealed that the total number of building approvals plummeted a seasonally adjusted 7.9 percent in May compared to the previous month, standing at 12,290. That missed by a mile forecasts for a decline of 0.5 percent on month following the 1.3 percent contraction in April.
In the European session, Swiss retail sales for May, Eurozone Sentix investor confidence for July, U.K. construction PMI for June and Eurozone PPI for May are expected to be released.
At 8:30 am ET, Canada’s industrial product price index for May is due for release.
The U.S. markets are closed today for Independence Day.
