The New Zealand dollar rose against the US dollar and the Japanese yen yesterday and maintained its gains today as the rally of commodities improved outlook for New Zealand exports, meaning that the currency will be in demand.
Fonterra Cooperative Group Ltd. showed on its GlobalDairyTrade website that prices for delivery of whole-milk powder in October climbed 7.3 percent, reaching the highest level in two months. The Thomson Reuters/Jefferies CRB Index of commodities gained 0.5 percent yesterday. The New Zealand Purchasing Managers’ Index rose in the second quarter of this year. PPI input increased 0.6 percent and PPI output grew 0.3 percent.
The macroeconomic data from the United States was good, boosting risk appetite and supporting riskier currencies. Yet traders felt uncertain as the positive fundamentals mean that the Federal Reserve may refrain from further easing. The uncertainty caused downside pressure on the kiwi.
NZD/USD rose from 0.8071 to 0.8109 yesterday and traded at 0.8114 as of 1:22 GMT today. NZD/JPY was at 64.36, following yesterday’s advance from 63.73 to 64.30. EUR/NZD was little changed at 1.5222.
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