The New Zealand dollar rose from a three-week low as better-than-expected Chinese manufacturing data lifted investors' confidence in the Australasian nations, which count the world's second-biggest economy as their biggest export market.
The kiwi rose to,85.80 US cents at 5pm in Wellington from 85.61 cents at 8am, and 85.55 cents yesterday. The trade-weighted index advanced to,79.99 from79.71 yesterday.
The kiwi and the Australian dollar gained after the preliminary HSBC manufacturing purchasing managers' index, a gauge of Chinese manufacturing,,rose to 49.7, a five-month high.
While the indicator shows the sector is still contracting, it was ahead of analysts' expectations for a print of 48.3, raising confidence the Chinese economy may avoid a sharper slowdown than initially feared.
Investors' appetite for riskier assets got a boost from minutes to the latest Federal Reserve policy meeting which said the US central bank didn't see inflation pressures which could warrant higher interest rates.