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NZ dollar retreats as greenback lifts

NZ Newswire logoNZ Newswire 24/10/2016 Jonathan Underhill

The New Zealand dollar fell against a broadly stronger US dollar after figures showed US manufacturing activity at its highest levels this year, driving up the greenback.

The kiwi fell to 71.31 US cents as at 8am in Wellington from 71.57 cents in late Asian trading on Monday, with domestic trading rooms closed for the Labour Day holiday. The trade-weighted index slipped to 76.89 from 77.12.

The Markit PMI manufacturing index in the US climbed to 53.2 in October, against expectations of 51.5 and the highest in a year. The US dollar index rose to its highest level in eight months.

"The US dollar and US interest rates rose, helped by buoyant economic data. In turn, both the risk-averse JPY and pro-risk NZD performed poorly," said Westpac's Imre Speizer.

"Overall the headline (PMI figure) indicates firmer activity in Q4".

The kiwi traded at 93.74 Australian cents from 94.03 cents, it fell to 58.32 British pence from 58.66 pence, slipped to 65.54 euro cents from 65.85 cents , eased to 74.30 yen from 74.39 yen and declined to 4.8297 yuan from 4.8485 yuan.

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