Bloomberg News

Aussie, N.Z. Dollars Rise as China Output Growth Beats Estimates

June 14, 2011

June 14 (Bloomberg) -- The Australian and New Zealand dollars strengthened after data showed China’s industrial production grew by more than economists had estimated, boosting prospects for growth in exports from the South Pacific nations.

The Aussie extended its advance, rising versus all of its 16 most-traded counterparts, after U.S. retail sales fell less than forecast. The New Zealand dollar also advanced as stock gains boosted demand for the currencies of commodity exporters.

“China’s demand or internally driven growth is still pretty strong; that’s positive for risk currencies,” said Jonathan Cavenagh, a foreign-exchange strategist in Singapore at Westpac Banking Corp., Australia’s second-largest lender.

The Australian dollar appreciated 0.9 percent to $1.0693 at 12:06 p.m. in New York, from $1.0602 yesterday, when it reached $1.0521, the lowest since May 26. The currency climbed 1.2 percent to 86.09 yen, from 85.07, and touched 86.16 yen, the highest level in a week.

New Zealand’s dollar gained 0.4 percent to 81.86 U.S. cents, from 81.55 cents yesterday. It strengthened 0.7 percent to 65.90 yen, from 65.44 yen.

China’s industrial production increased 13.3 percent in May from a year earlier, the Beijing-based National Bureau of Statistics reported today, exceeding the 13.1 percent growth predicted by economists in a Bloomberg News survey.

Consumer prices in China rose 5.5 percent in May from a year earlier. The gain matched the median of economists’ estimates in a Bloomberg News survey, easing concern the government of the fastest-growing major economy would take measures to cool its expansion.

The MSCI World Index of stocks climbed 1.3 percent after U.S. Commerce Department data showed American retail sales fell 0.2 percent in May, less than the 0.5 percent drop forecast by economists in another Bloomberg survey.

--With assistance from Cecile Vannucci in New York. Editors: Greg Storey, Paul Cox

To contact the reporter on this story: Yoshiaki Nohara in Tokyo at ynohara1@bloomberg.net

To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net


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