By Kate Geenty
WELLINGTON--The New Zealand dollar rose above US$0.7400 on the back of weak U.S. data and higher dairy prices.
Shortly after 0400 GMT Wednesday, the New Zealand dollar was trading at US$0.7429 compared with US$0.7317 at the same time Tuesday.
"Weak U.S. data saw the (U.S) dollar dumped across the board and the GlobalDairyTrade Auction (GDT) added to the New Zealand dollar allure as the kiwi lead the global commodity currency charge," said Stuart Ive, private client manager at OM Financial in Wellington.
The Global Dairy Trade auction recorded its third consecutive increase, with the headline index rising 7.7%. "The GDT has now risen a cumulative 27% since the beginning of August. Whole milk powder also continued its upswing, increasing 3.7% to an average price US$2,793 per metric tonne," said Mr. Ive.
The U.S. non-manufacturing index, which was released overnight Tuesday, fell to 51.4 in August from 55.5 in July, the lowest reading since February 2010, and well below a consensus expectation of 55.0 from economists surveyed by The Wall Street Journal. "Whether a quirk, or a sign of substantial slowdown, the USD index promptly fell sharply," said BNZ currency strategist Jason Wong.
Mr. Wong said the longer-term fate of the NZD/USD "remains firmly in the hands" of the U.S. dollar.
-Write to Kate Geenty at kate.geenty@wsj.com
(END) Dow Jones Newswires
September 07, 2016 00:20 ET (04:20 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
By Kate Geenty WELLINGTON--The New Zealand dollar rose above US$0.7400 on the back of weak U.S. data and higher dairy prices. Shortly after 0400 GMT Wednesday, the New Zealand dollar was trading at US$0.7429 compared with US$0.7317 at the same time Tuesday. "Weak U.S. data saw the (U.S) dollar dumped across the board and the GlobalDairyTrade Auction (GDT) added to the New Zealand dollar allure as the kiwi lead the global commodity currency charge," said Stuart Ive, private client manager at OM Financial in Wellington. The Global Dairy Trade auction recorded its third consecutive increase, with the headline index rising 7.7%. "The GDT has now risen a cumulative 27% since the beginning of August. Whole milk powder also continued its upswing, increasing 3.7% to an average price US$2,793 per metric tonne," said Mr. Ive. The U.S. non-manufacturing index, which was released overnight Tuesday, fell to 51.4 in August from 55.5 in July, the lowest reading since February 2010, and well below a consensus expectation of 55.0 from economists surveyed by The Wall Street Journal. "Whether a quirk, or a sign of substantial slowdown, the USD index promptly fell sharply," said BNZ currency strategist Jason Wong. Mr. Wong said the longer-term fate of the NZD/USD "remains firmly in the hands" of the U.S. dollar. -Write to Kate Geenty at kate.geenty@wsj.com (END) Dow Jones NewswiresSeptember 07, 2016 00:20 ET (04:20 GMT)Copyright (c) 2016 Dow Jones & Company, Inc.
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