Forex: NZD/USD – Greenback fighting back
_iNVEZZ.com Thursday July 11th:_ Today’s Asian session saw the NZD/USD continue an uptrend from 0.7915 which started yesterday when the greenback fell 1.32 percent against the kiwi and the pair rose to a three-week high at 0.7967.
Subsequently though, the US dollar has been regaining some of that lost ground, with the quote falling to 0.7859 in mid-European trading, an intraday low so far.
The BNZ-Business NZ PMI for June was released earlier today, showing a drop of 4.3 points to 54.7 in June from May’s 59.0, but logging its highest result for a June month since 2004. A reading above 50 indicates sectoral expansion, while below shows contraction.
Earlier in the week, the New Zealand Institute of Economic Research reported in its quarterly survey of business opinion (QSBO) that New Zealand manufacturers were much more upbeat than previously about the state of the economy and were expecting higher outputs, exports and profitability in the coming quarter.
BNZ economist Craig Ebert observed: “We take this week’s PMI and QSBO as further evidence New Zealand’s manufacturing industry is in relatively good heart. From a bumpy 2012, manufacturing production has developed a clear expansive tone to it this year.”
On the consumer front, the country’s Food Price Index for June m/m came out as a 2.1 percent rise, against May’s 0.3 percent increase, and registered its biggest monthly increase since the 2.2 percent gain in October 2010.