NZ Dollar Strengthens On Trade Deal, China Data
December 16 2019 - 1:30AM
RTTF2
The NZ dollar drifted higher against its major counterparts in
European deals on Monday amid risk appetite, as trade worries and
Brexit uncertainty appeared somewhat eased and a string of Chinese
data topped forecasts.
Official data showed that China's industrial production rose an
annual 6.2 percent in November, coming in above forecasts of 5.0
percent growth.
Similarly, retail sales grew 8.0 from last year, above
expectations of a 7.6 percent growth.
Investors cheered developments on the U.S-China trade front, as
both nations reached a historic agreement on a phase one trade
deal.
U.S. Trade Representative Robert Lighthizer said on Sunday that
the phase one U.S.-China trade deal is "totally done" and will
nearly double U.S. exports to China over the next two years.
The kiwi traded mixed against its major counterparts in the
Asian session on Monday. While it rose against the euro and the
aussie, it was steady against the greenback and the yen.
The kiwi appreciated to 0.6612 against the greenback, after
falling as low as 0.6588 at 6:00 pm ET. The kiwi may find
resistance around the 0.68 level.
Following a decline to 72.04 against the yen at 6:00 pm ET, the
kiwi bounced off with the pair trading at 72.33. The kiwi is seen
locating resistance around the 75.00 level.
Data from the Ministry of Economy, Trade and Industry showed
that Japan's tertiary industry activity declined at a
faster-than-expected rate in October.
Tertiary industry activity decreased 4.6 percent month-on-month
in October. Economists had forecast a 3.6 percent fall.
Extending early gains, the kiwi rose to a 5-day high of 1.0412
against the aussie. This followed a low of 1.0433 seen at 8:30 pm
ET. If the kiwi rises further, 1.025 is likely seen as its next
resistance level.
Survey results from IHS Markit and Commonwealth Bank of
Australia showed that Australia private sector fell marginally in
December.
The composite output index dropped to 49.4 in December from 49.7
in the preceding month.
The kiwi recovered to 1.6847 against the euro, from a low of
1.6905 set at 2:30 am ET. The kiwi is likely to locate resistance
around the 1.64 mark.
Flash survey data from IHS Markit showed that the Eurozone
private sector logged a moderate growth in December, rounding off a
fourth quarter in which output rose at the weakest pace since the
economy started recovery in the second half of 2013.
The composite output index held steady at 50.6 in December,
signaling a very modest growth across manufacturing and service
sectors. The score was slightly above the forecast of 50.5.
Looking ahead, Canada existing home sales for November, New York
Fed's empire manufacturing survey and NAHB housing market index for
December are set for release in the New York session.
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