The New Zealand dollar advanced today, rising for the second trading session, as macroeconomic reports showed that business confidence improved and manufacturing continued to expand, confirming positive developments in the New Zealand economy.
New Zealand Institute of Economic Research reported that business confidence index rose from 0 to 13 in the first quarter of 2012. Business NZ manufacturing index was down from 57.7 in February to 54.5 in March, but is still at the second highest level since May 2011. A figure above 50.0 indicates expansion.
Many analysts point out that the New Zealand currency is torn between opposite forces. Domestic fundamentals are good and positive for the currency, while the global economic environment isn’t particularly favorable to riskier currencies. At the moment, though, news from overseas is good and beneficial for the kiwi.
NZD/USD was up from 0.8179 to 0.8188 and NZD/JPY rose from 66.12 to 66.30 as of 00:51 GMT today. EUR/NZD was near 1.6008 after falling from 1.6018 to 1.5981.
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