NZ Dollar Supported by Risk Appetite Despite Poor Data

The New Zealand dollar was firm today despite negative domestic fundamentals. Yesterday’s announcement of the Federal Reserve put the Forex market in a risk-positive mode, overshadowing most other news.
The BusinessNZ seasonally adjusted manufacturing PMI fell from 50.3 in October to 48.8 in November, indicating a decline of the manufacturing sector. The Food Price Index dropped 0.8 percent in November from October, when it slid 0.6 percent. Nevertheless, the kiwi (as the New Zealand currency is nicknamed) remained strong, supported by yesterday’s announcement of additional stimulus from the Fed.
NZD/USD rose from 0.8427 to 0.8438 as of 11:20 GMT today. NZD/JPY climbed from 70.16 to 70.38 and its daily high of 70.64 was the highest since October 2008.

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