NZ Dollar Advances, U.S. Dollar Drops On Upbeat Japan, China Data
The NZ dollar climbed and the U.S. dollar fell in the Asian
session on Monday, as strong Japan and China data suggested a
rebound in the world's second and third largest economies.
The Japanese economy grew more than expected in the third
quarter, as improved exports and consumption helped the country
emerge from the virus crisis.
China retail sales improved from last month, while industrial
output matched expectations, government data showed.
Investors also were encouraged by the news of the ASEAN trade
deal aimed to accelerate the economic recovery from the
Asia Pacific nations including China, Japan and South Korea on
Sunday signed the world's largest free-trade agreement.
The Regional Comprehensive Economic Partnership deal reduces
tariffs, accelerates the service sector and lays down common trade
rules within the bloc.
The kiwi strengthened to 4-day highs of 0.6890 against the
greenback, 72.02 against the yen, 1.7203 against the euro, after
falling to 0.6840, 71.56 and 1.7294, respectively in previous
deals. The kiwi is poised to find resistance around 0.70 against
the greenback, 74.00 against the yen, 1.66 against the euro.
The kiwi appreciated to 1.0588 against the aussie, following a
decline to 1.0623 at 6:15 pm ET. Next key resistance for the kiwi
is seen around the 1.03 level.
The greenback pulled back from its early highs of 104.72 against
the yen and 1.1829 against the euro, weakening to 1-week lows of
104.49 and 1.1855, respectively. If the greenback falls further,
101.00 and 1.20 are possibly seen as its next support levels
against the yen and the euro, respectively.
The greenback hit 5-day lows of 1.3234 against the pound and
0.7298 against the aussie, down from its prior highs of 1.3174 and
0.7263, respectively. The greenback is seen finding support around
1.34 against the pound and 0.75 versus the aussie.
Retreating from a high of 1.3136 seen at 5:30 pm ET, the
greenback dipped to a 4-day low of 1.3097 against the loonie. The
next possible support for the currency is seen around the 1.29
The greenback edged down to 0.9114 against the franc early in
the session and was steady thereafter. The greenback is likely to
find support near the 0.90 level.
Looking ahead, Canada manufacturing sales for September and New
York Fed's empire manufacturing survey for November are scheduled
for release in the New York session.