RTTN:New Zealand Dollar Trades Higher Against Most Majors
The New Zealand dollar traded higher against most major currencies in the European session on Wednesday as investors bought high-yielding currency amid positive economic reports out of Europe.
France's industrial production increased 1.5 percent on a monthly basis in August, faster than the 0.6 percent gain seen in July.
In Italy, industrial production increased a seasonally adjusted 1.7 percent month-on-month in August, while economists expected output to decline 0.5 percent. Annually, industrial production decreased a calendar-adjusted 5.2 percent, sharply slower than the 9.7 percent fall economists had forecast.
Greece industrial production increased 2.5 percent on an annual basis in August, marking the first growth in output since the country slipped into the financial crisis. In July, production had decreased 4.9 percent.
Germany's wholesale prices rose at a more than expected pace of 4.2 percent year-on-year in September after climbing 3.1 percent in August.
New Zealand budget deficit remained above forecast in the fiscal year ended June 30, financial statements from the government revealed today.
The operating deficit before gains and losses was NZ$9.2 billion in the year to 30 June 2012, wider than NZ$8.4 billion forecast.
The kiwi gained to 0.8188 against the U.S. dollar, after sliding to a new multi-week low of 0.8148 in the previous session. The pair closed deals at 0.8181 on Tuesday.
Reversing from an early Asian session's 2-week low of 63.74 against the yen, the kiwi strengthened to 64.12 in European trading. The kiwi-yen pair ended Tuesday's New York session at 64.03.
Bank of Japan Governor Masaaki Shirakawa said they are aware about the effects that the rapid appreciation of the yen could have on Japan's economy and inflation outlook.
"Concern over these effects of exchange rate developments has been one of the factors that influenced the Bank's series of decisions to further ease its monetary policy," he said today at the programme attended by Swiss National Bank Chairman Thomas Jordan.
Against the euro, the kiwi rallied to a 1-week high of 1.5725 and the kiwi is likely to find next upside target level at 1.565. At yesterday's close, the euro-kiwi pair was worth 1.5760.
The developments in Eurozone still remained a major threat to the creditworthiness of Asia-Pacific sovereigns, Standard & Poor's said in a report.
The risks of instability are still substantial, despite the more decisive actions shown by Eurozone policymakers, the agency said. The main threat remains centered around an unexpectedly severe deterioration of the Eurozone's economic and financial situation, it noted.
The U.S. wholesale inventories for August and the Federal Reserve's Beige Book economic survey results could garner market attention in the New York session.
