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NZ dollar falls vs Aussie on China data

NZN 14/02/2017 Rebecca Howard

The New Zealand dollar fell against the Australian dollar on Tuesday after a strong business survey across the Tasman and better-than-expected data out of China.

The kiwi declined to 93.52 Australian cents as at 5pm in Wellington from 93.92 late Monday. It was at US71.75 cents from US72 cents. The trade-weighted index fell to 78.17 from 78.26.

"It's been more of an Aussie day," said Imre Speizer, senior FX strategist at Westpac. "First there was a decent business conditions survey, so growing signs the Australian economy is improving. The second part of that story was the Chinese CPI and PPI were both a bit higher than expected, pointing to signs of improvement there as well," he said.

National Australia Bank's monthly survey of more than 400 firms showed its index of business conditions jumped 6 points to +16 in January. That took it back to the highs seen in mid-2007 and well above the long-run average of +5, Reuters reported.

In China, the producer price inflation picked up more than expected in January to near six-year highs as prices of steel and other raw materials extended a rally, adding to views that global manufacturing activity is building momentum.

The kiwi fell to 81.48 yen from 82.02 yen. It declined to 57.24 British pence from 57.63 pence and fell to 67.67 euro cents from 67.80 cents. The kiwi slipped to 4.9354 yuan from 4.9551 yuan.

New Zealand's two-year swap rose 2 basis points to 2.33 per cent while 10-year swaps rose 3 basis point to 3.45.

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