"Trade data suggests industrial activity is coming alive in China at a much better rate than expected and, by proxy, this can be viewed favourably when extrapolated across Asian and global economies that are emerging from lockdown, implying there is strong economic life post Covid-19," said Stephen Innes, markets strategist at Axicorp.
However, Pat Gilligan, a director at Forex, said the tone in the market lacks momentum, in keeping with the slight weakness in US equities markets overnight.
"We're still taking a lead from the equities markets," he said.
"It's a little bit of risk off – the kiwi's had a couple of goes" at breaking below 60 US cents without success.
US markets weren't helped by data showing companies there had shed more than 20 million jobs in April. There could be further bad news tonight when US unemployment filing figures are released – the market is expecting another 3 million people filed new claims in the week ended May 2.
"I think the big number will be that non-farm payrolls tomorrow night," Gilligan said. The forecast is that the US Labor Department data will show a record 21 million decline in total non-farm payrolls and a jobless rate surging to 16 per cent.
"The main concern for markets and everyone is what happens to unemployment globally," he said.
The New Zealand dollar was trading at 93.75 Australian cents from 94.02 cents at 5pm yesterday. It was at 48.82 British pence from 48.68 pence, at 55.71 euro cents from 55.83 cents, at 63.90 yen from 64.39 yen and at 4.2687 Chinese yuan from 4.2918 yuan.
The bid price on the two-year swap rate closed at 0.1450 per cent from 0.2050 per cent yesterday and 10-year swaps were at 0.7600 per cent from 0.7525 per cent.
