Aussie and Kiwi Remain Steady Before China Manufacturing

The Australian and New Zealand dollars held gains from yesterday before data forecast to show an expansion in Chinese manufacturing accelerated, boosting trade prospects.

Australian bonds fell, with the yield on 10-year debt headed for the sharpest weekly climb in seven weeks. The so- called Aussie was near a four-month low against its New Zealand counterpart after data showed Australia’s manufacturing contracted ahead of a central bank meeting next week. Reserve Bank of New Zealand Governor Graeme Wheeler will speak today after saying yesterday he expects the economy to recover.

“Chinese manufacturing data is the highlight today, and if we get results in line with consensus, that should be positive for both Aussie and kiwi,” said Alvin Pontoh, an Asia-Pacific strategist at TD Securities Inc. in Singapore. “When we look at Aussie and kiwi, we prefer kiwi because of the monetary policy outlook.”


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