The New Zealand dollar edged up as investors reassessed their positions after Chinese data printed better than expected amid concerns about global economic growth.
The kiwi was at 78.79 US cents at 8am in Wellington, from 78.72 cents at 5pm yesterday. The trade-weighted index was at 76.66 from 76.57 yesterday.
Currency markets have been volatile the past week on concern about the outlook for growth in major economies including Europe, China and Japan. However, some investors are now reconsidering the outlook after a report yesterday showed Chinese exports rose more than expected in September and imports unexpectedly accelerated. China, the world's second-largest economy, is New Zealand's largest trading partner.
"We got a little bit of a mini-boost from the Chinese trade data yesterday which showed that Chinese imports are up so that's a glimmer of hope that Chinese domestic demand is picking up," said Peter Cavanaugh, client advisor at Bancorp Treasury Services. "There's been nothing happening internationally and we have had quite a volatile period so we occasionally get this day or three where the markets are contemplating their navels and waiting for what happens. It may be a welcome respite."
The New Zealand dollar slipped to 89.89 Australian cents from 90.11 cents yesterday ahead of a NAB business confidence report today.
