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The New Zealand dollar rose against its Australian counterpart as the nation’s manufacturing industry expanded at the fastest pace since 2010.
The Australian dollar rose against the greenback as global stocks rebounded. New Zealand’s dollar rose against all its major counterparts after U.S. regional manufacturing indexes gained to the highest in almost a year, buoying risk sentiment.
“The stronger New Zealand economic data we’re starting to see does mean that Aussie-kiwi will continue to shift lower,” said Mike Jones, a currency strategist at Bank of New Zealand in Wellington. “Investors will look to play the stronger New Zealand economic view through the Aussie-kiwi cross, rather than against the U.S. dollar.”
New Zealand’s currency added 0.5 percent to NZ$1.2848 versus the Aussie at 2:25 p.m. in New York. It has gained seven of the past eight days. The kiwi rose 1.4 percent to 82.03 U.S. cents and rallied 0.9 percent to 68.37 yen.
Australia’s dollar advanced 0.4 percent to 87.86 yen. It fetched $1.0541, 0.8 percent stronger.
The Bank of New Zealand Ltd. and Business New Zealand, a Wellington-based employer group, reported today that the Performance of Manufacturing Index rose to 57.7 in February from a revised 50.8 in January. That was the highest since April 2010. A reading of more than 50 indicates that manufacturing is expanding.
The MSCI World Index of stocks rose 0.7 percent as manufacturing in the Philadelphia region expanded in March at the fastest pace in almost a year as factory employment picked up. New York regional manufacturing expanded at the fastest pace since June 2010.
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