The New Zealand dollar advanced after weaker-than-expected US data weighed on the US dollar.
The kiwi rose to 78.97 US cents at 8am in Wellington, from 78.75 cents at 5pm yesterday. New Zealand banks were closed yesterday for the Labour Day holiday.
In the US, Markit said its preliminary services sector purchasing managers' index fell in October to its lowest reading since April. Other reports in the US also disappointed, with the National Association of Realtors saying its pending home sales index rose just 0.3 percent in September while the Federal Reserve Bank of Dallas said its production index fell this month. In Europe, the Ifo measure of German business confidence fell for a sixth straight month to the weakest reading since December 2012.
"With local markets closed yesterday for the Labour Day holiday, the New Zealand dollar took its cues from global themes," Bank of New Zealand currency strategist Raiko Shareef said in a note. "It was an able participant in the broader US dollar sell-off."
