New Zealand dollar was trading on higher levels and also in proximity to four-month highs against its US peer on Monday, supported by the upbeat manufacturing data out of China.
NZD/USD reached a session high at 0.8384 at 7:10 GMT, after which the pair consolidated at 0.8376, gaining 0.17% for the day. Support was likely to be received at September 18th low, 0.8206, while resistance was to be encountered at September 19th high and a four-month high, 0.8436.
The preliminary value of the HSBC Purchasing Managers’ Index for China registered its highest point in six months in September, reaching 51.2, as in August the index stood at 50.2. The median estimate pointed a reading of 50.9. The sub-index of new orders has reversed its trend and was now climbing. What is more, new orders increased at a faster rate in September compared to August. Values above the key level of 50.0 usually suggest that activity in the sector has increased. This flash value of the PMI from HSBC and Markit is based on 85% to 90% of responses to surveys, sent to more than 420 manufacturers. The data caused positive influence on the kiwi dollar, as China is New Zealands second largest export market.
Meanwhile, Federal Open Market Committee (FOMC) voting member William Dudley is expected to speak today, following comments made by Bank of St. Louis President James Bullard on Friday, who said that Fed’s decision not to taper in September was “close” and also indicated a possible move towards a small reduction in asset purchases in October. The US dollar received a certain support after this statement.
Elsewhere, the kiwi was lower against the Aussie, with AUD/NZD cross advancing 0.16% for the day to trade at 1.1251 at 7:40 GMT.
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