February 18, 2011
Back to back, baby! The Kiwi was once again able to regain some of its recent losses to the Greenback as it rode a strong manufacturing index reading to Winners’ Town! NZD/USD scurried up 36 pips to finish the day at .7590.
Thanks to the rise in the Business NZ manufacturing index, Kiwi bulls were able to continue their pip-party! The index picked up from 53.2 to 53.7 last month, showing continued expansion in the manufacturing sector. Will this trend continue? Something tells me that given the repairs necessary to rebuild parts of New Zealand after the Canterbury earthquake, we might continue to see this sector post gains in the coming months!
As for New Zealand’s PPI data, we got mixed results. PPI input came in as expected at 0.9% while PPI output fell short of the forecasted 0.9% rise and only showed a 0.2% increase in the price of goods sold by manufacturers. It looks like those hoping to see a rate hike may have to wait until the second half of the year because this report shows inflationary pressures are weak at the moment!
Nothing more to see from New Zealand today! But stay on your toes because my homeboy Ben Bernanke is scheduled to speak at 1:00 pm GMT. His words tend to rock the Greenback, so if you’re looking to trade NZD/USD today, listen closely!
"The only cable I watch is the pound baby."