The New Zealand dollar traded largely flat today, though it managed to gain on some of the majors, including the US dollar. The kiwi got a boost from positive domestic macroeconomic data as well as better-than-expected reports in China.
The ANZ business confidence improved from -15.7 in October to -6.9 in November according to the final estimate. The preliminary reading had promised the index to stay about unchanged. The report commented on the result:
The New Zealand business sector is feeling increasingly upbeat. Business confidence is the highest since late 2017 â albeit still negative! Excellent vaccine news may have had something to do with the lift seen across the survey this month, and very likely the spending vibe associated with the still-buoyant housing market.
It added further:
Monetary and fiscal policy have undoubtedly done their jobs this year. But itâs worth remembering that both work by bringing forward spending from the future. Thereâs no free lunch, and they need to be used judiciously. The true underlying momentum of the economy should become clearer over the next few months as the impact of one-offs fade, but the case for further life-support measures is becoming less clear by the day. And thatâs certainly something to celebrate.
As for China’s data, the official manufacturing Purchasing Managers’ Index rose to 52.1 in November from 51.4 in October. Analysts were expecting just a small increase to 51.6. The non-manufacturing PMI rose to 56.4 from 56.2, whereas economists had predicted a fall to 56.0. Both indicators were showing growth of the industries for nine months in a row.
NZD/USD rose from 0.7022 to 0.7049 as of 11:40 GMT today. EUR/NZD was about flat at 1.7010. NZD/JPY gained from 73.03 to 73.26.
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