Positive week for Kiwi pairs on a combination of positive China updates, a softening USD, and not so dovish interest rate comments from RBNZ members
New Zealand Headlines and Economic data
- A private survey shows China’s manufacturing activity for May was slightly higher than expected – the Chinese update was probably the driver for the Kiwi as most pairs rose higher during the Asia session despite the lack news and headlines from New Zealand.
- RBNZ official sees rates at current levels in foreseeable future – it’s highly possible this was the catalysts for one final mid-week surge higher, especially given that other major central banks were being speculated on becoming more stimulative this year.
- The ANZ World Commodity Price Index was stable in May, following a revised 2.6% rise in April. The index is now 0.7% stronger than a year ago
- Another weak U.S. jobs update correlates with a somewhat broad move higher in Kiwi pairs, arguing that weak U.S. economic data will lead to stimulative actions from the Federal Reserve (which usually a weaker Greenback). A weak dollar generally leads to higher commodity and comdoll prices.