The New Zealand dollar jumped today as China’s manufacturing index climbed to the highest level in 16 month, suggesting that the economy of New Zealand’s biggest trading partner is still in a good shape.
Chinaâs manufacturing Purchasing Managers’ Index climbed from 50.3 in July to 51.0 in August. Analysts have predicted ahead of the data a smaller increase to 50.6. The report said that the improvement was caused mainly by new orders and noted:
In our view, this suggests that the liquidity squeeze in June has had limited impact on the domestic demand for industrial products. Indeed, the market sentiment has improved.
NZD/USD advanced from 0.7760 to 0.7817 and NZD/JPY rose from 76.39 to 77.58 as of 14:44 GMT today.
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