The New Zealand dollar is heading for a 1.3 percent weekly gain after a string of upbeat local data heightened investors' anticipation for future interest rate hikes.
The kiwi rose as high as 84.13 US cents, the highest since Jan. 14, trading at 83.90 cents at 5pm in Wellington from 82.79 cents at the New York close last week, and was up from 83.77 cents at 8am and 83.24 cents yesterday. The trade-weighted index rose to 78.84 from 78.32 yesterday. The TWI is heading for a 1 percent weekly gain from 78.03 at the New York close last week.
A BusinessDesk survey of 11 strategists and traders on Monday predicted the local currency would trade between 81.50 US cents and 84.20 cents this week. Four expected the kiwi to decline; five picked it would stay relatively neutral, and two anticipated a gain.
The ANZ Business Outlook today showed business confidence near a 20-year high as firms anticipate strong economic growth. That followed government figures yesterday showing a surge in exports to China and a decade-high inbound migration, as well as Fonterra Cooperative Group raising its forecast payout to farmers this season. The kiwi dollar is heading for a 3.8 percent gain this month.
Traders are pricing in a 96 percent chance Reserve Bank governor Graeme Wheeler will lift the official cash rate at the March 13 review as he looks to head off future inflation from a rapidly accelerating economy.
