NZ dollar gains, snapping five-day slide

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The New Zealand dollar rose, snapping a five-day decline, on the back of weaker-than-expected US manufacturing a construction data.

New Zealand currency fifty dollar note money

New Zealand currency fifty, dollar note (file picture).

Source: istock.com

The kiwi dollar rose to US69.06c as at 8am from US68.56c late yesterday. The trade-weighted index rose to 74.97 from 74.51.

The Chicago Board Options Exchange Volatility Index (VIX), known as Wall Street's fear gauge, fell as low as 9.56, the lowest since early 2007.

Meanwhile, the US ISM manufacturing survey came in as 54.8 in April compared to expectations of 56.5, and March construction spending missed estimates with an unexpected 0.2 per cent decline.

While the US dollar index recovered from its initial sell-off, the kiwi and the Australian dollars were among the best-performing major currencies overnight.

"After five consecutive daily losses and trading to nine-month lows against the USD, the NZD along with the AUD have rallied," traders at HiFX said in a note.

"The push higher against the USD comes on the back of further disappointing US economic data."

The kiwi dollar may get a further boost this week with expectations Tuesday night's GlobalDairyTrade auction will deliver little-changed prices, meaning whole milk powder will hold onto its 25 per cent gain since early March, while employment figures tomorrow are expected to show employment growth in the first quarter and a strong participation rate of about 70 per cent.

Ahead of those events, traders today will be watching for manufacturing data from China and the Reserve Bank of Australia's latest review of interest rates, which is expected to deliver no change.

The kiwi traded at A91.70c from A91.62c late yesterday and rose to 4.7562 yuan from 4.7231 yuan.

The local currency rose to 77.18 yen from 76.53 yen and gained to 63.37 euro cents from 62.94 euro cents.

It rose to 53.56 British pence from 53.10 pence.

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