NZ Dollar Rises As China Manufacturing Activity Returns To Growth

(RTTNews) - The New Zealand dollar strengthened against other major currencies in the Asian session on Friday, after China's manufacturing activity returned to growth in October as companies ramped up production and purchasing to meet higher demand amid improving confidence.

Data from S&P Global showed that the Caixin manufacturing Purchasing Managers' Index rose to 50.3 in October from 49.3 in September. A reading above the neutral mark of 50.0 indicates expansion.

The official PMI survey results published by the National Bureau of Statistics showed that the factory activity grew for the first time in six months. The PMI hit 50.1 in October, up from 49.8 in September.

Meanwhile, traders remain cautious and seemed reluctant to make significant moves ahead of the highly anticipated U.S. monthly jobs report later in the day as well as next week's U.S. presidential election. The uncertainty about the outlook for interest rate cuts weighed on market sentiment.

In economic news, data from Statistics New Zealand showed that the total number of building permits issued in New Zealand was up a seasonally adjusted 2.6 percent on month in September, after slumping 5.2 percent in August.

In September, there were 2,943 new dwellings consented, comprising 1,378 stand-alone houses; 1,091 townhouses, flats, and units; 277 apartments; and 197 retirement village units.

In the Asian trading now, the NZ dollar rose to a 2-day high of 0.5984 against the U.S. dollar, from yesterday's closing value of 0.5976. The kiwi may test resistance around the 0.61 region.

Against the yen and the euro, the kiwi advanced to 91.25 and 1.8180 from Thursday's closing quotes of 90.85 and 1.8205, respectively. If the kiwi extends its uptrend, it is likely to find resistance around 93.00 against the yen and 1.78 against the euro.

The kiwi edged up to 1.0992 against the Australian dollar, from an early 4-day low of 1.1027. On the upside, 1.08 is seen as the next resistance level for the kiwi.

n economic news, the manufacturing sector in Australia continued to contract in October, albeit at a slower rate, the latest survey from Judo Bank revealed on Friday with a manufacturing PMI score of 47.3. That's up from 46.7 in September.

Meanwhile, the Australian Bureau of Statistics said producer prices in Australia were up 0.9 percent on quarter in the third quarter of 2024. That exceeded expectations for an increase of 0.7 percent, although it eased 0.1.0 percent in the three months prior. On a yearly basis, producer prices climbed 3.9 percent - roughly in line with forecasts and down from 4.8 percent in the previous three months.

Looking ahead, U.K. Nationwide house price data for October, Switzerland consumer prices, retail sales and PMI data, for October and U.K. S&P Global final manufacturing Purchasing Managers' survey data for October are slated for release in the European session.

In the New York session, U.S. jobs data for October, U.S. Dallas Fed PCE index for September, Canada and U.S. S&P Global manufacturing PMI for October and U.S. Baker Hughes weekly oil rig count data are set to be released.