The New Zealand dollar edged higher yesterday, after a report showed US non-manufacturing activity was on the road to recovery.
The National Association of Purchasing Management's non-manufacturing index climbed to 51.3 in November against 40.6 in October, pointing to some growth in the service sector.
Dealers said the news could be good for both the Australian and New Zealand economies and their currencies as the US was a key market for their export-dependent economies.
At 5pm, the kiwi was at US41.57c from US41.30c at Wednesday's close. Its Australian counterpart was also higher at US51.71c (US51.57c).
The move higher today was on light volumes, however.
"It has been very very quiet. People are in Christmas mode," Deutsche Bank dealer Tim Robinson said.
Looking ahead, the focus now was on interest rates, following Wednesday's decision by the Australian Reserve Bank to trim its official rate by 25 basis points to 4.25 per cent and with the US Federal Reserve set to meet again next week.
Dealers expected the kiwi to range between US41.35c and US41.60c overnight.
On the crosses at 5pm the kiwi was at A80.33c (A80.10c at yesterday's close), 51.55 yen (51.31), 29.34 pence (29.04), 0.9157 marks (0.9078), 0.6895 Swiss francs (0.6830) and 46.82 euros (46.42).
The Australian dollar was buying $NZ1.2449 from $NZ1.2487.
The trade-weighted index was at 49.72 (49.42), the 90-day bank bills were at 4.90 per cent (4.88) and the monetary conditions index was at minus 903 (minus 935).
On the local debt market, the March 2002 bonds were at 4.77 per cent (4.74), the April 2004s were at 5.69 per cent (5.46), the November 2006s were at 6.22 per cent (5.98) and the November 2011s were at 6.56 per cent (6.36).
- NZPA
<i>Currency:</i> Kiwi edges higher on US manufacturing data
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