New Zealand Dollar Uninspired by Performance of Manufacturing Index Release
THE TAKEAWAY: Performance of Manufacturing Index rose to 57.7 from 50.5 > Positive Data Does Not Offset General Risk Trends > NZDUSD Shows Little Reaction
Data released by the Bank of New Zealand shows that business sentiment in the manufacturing sector rose during February. The performance of manufacturing index (PMI) rose to 57.7 from 50.5, where the measure stood at the beginning of last month. The PMI now stands at the highest level since April 2010, driven by large jumps in production and new orders. Production rose 9.8 points to 61.9, and new orders increased 12.5 points to 63.1. The country’s economy had been contracting from September through December last year but has seemingly reversed itself in the last two months.
General risk trends have been leading the Kiwi downward over the last few days, but the currency experienced a modest rebound earlier in the evening. The data release was certainly positive; however, the positive figure did not add much to the upward trend. In the moments after the data’s release, the NZDUSD made a small jump from 0.8092 to 0.8099.
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