Chinese data doesn't dent kiwi dollar

  • 03/08/2015
Chinese data doesn't dent kiwi dollar

The New Zealand dollar is little changed as Chinese data showed industrial production slowed more than expected last month, raising fears about the strength of the world's most-populous nation.

The kiwi traded at 65.82 US cents at 5pm in Wellington from 65.88 cents at 8am and unchanged from the New York close on Friday.

The trade-weighted index edged up to 70.24 from 70.14.

The Caixin purchasing managers' index showed China's factory activity shrank more than earlier estimated last month.

While that would normally weigh on currencies such as the kiwi dollar, whose economies are tied to the fortunes of China, weak US employment cost data on Friday has put the world's biggest economy in focus, with the ISM manufacturing index the next gauge traders are watching ahead of US non-farm payrolls at the end of the week.

"I was pretty surprised we didn't see more reaction to the miss in the Chinese PMI," said Raiko Shareef, currency strategist at Bank of New Zealand in Wellington.

"The kiwi tried to test the 65 [US cents] level on Friday night, but the employment index in the States put paid to that - we'll probably have another test of that this week."

The kiwi traded at 90.20 Australian cents at 5pm in Wellington from 90.07 cents on Friday in New York, at 4.0859 Chinese yuan from 4.0872 yuan, at 81.62 yen from 81.56 yen and 59.94 euro cents from 59.90 cents.

NZN