NZ dollar creeps up ahead of bank meetings
Wed, 01 Aug 2012 6:11p.m.
The New Zealand dollar rose above 81 US cents in local trading as official Chinese figures showed manufacturing in the world's second-biggest economy is still growing, albeit at a slower pace, and ahead of the European and US central bank meetings.
The New Zealand dollar rose to 81.07 US cents at 5pm from 80.83 cent at 8am, little changed from 80.99 cents.
The trade weighted index inched up to 73 from 72.93.
Official Chinese manufacturing figures were less upbeat than expected, though still showed the sector is growing.
The Purchasing Managers' Index slipped to 50.1 in July from 50.2 in June on a scale where anything above 50 still means expansion.
A reading of 50.5 was expected, according to a Bloomberg survey.
That comes ahead of the Federal Reserve's monetary policy statement on Wednesday in Washington and the European Central Bank's review the same day in Frankfurt.
"The Chinese data was mixed," said Tim Kelleher, head of institutional FX sales NZ, ASB Institutional.
The range for the kiwi ahead of the FOMC is 80.75 US cents to 81.30 cents, he said.
Comments this week that the kiwi dollar has become a safe haven are also underpinning the local currency.
The kiwi rose to a two-week high against the Australian dollar, which may reflect Australian media reports that Rio Tinto is closing offices and shedding workers because of falling commodity prices.
That could be undermining the Australian dollar, Mr Kelleher said.
The kiwi rose as high as 77.32 Australian cents, and traded at 77.27 cents at 5pm from 76.92 cents.
The New Zealand dollar was little changed at 65.92 euro cents from 65.96 cents and advanced to 51.73 pence from 51.52 pence. The kiwi decreased to 63.24 yen from 63.35 yen.
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2/08/2012 9:55:33 a.m.
The US Federal Reserve is a criminal organisation! FACE IT! STOP THE BS!So many dumb ass conservative voters out there would disagree, right? the smart ones know the truth!lets get back to true economics"Austrian School Of Economics" is the answer!
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