Daily Morning Report 02/06/2015
The New Zealand dollar was higher against its U.S. counterpart today, as investors locked in profits from the greenback recent rally due to strong U.S. data and growing expectations for a U.S. rate hike in the coming months.
U.S Dollar had strengthened broadly after data on Monday showed that the Institute of Supply Management’s index of manufacturing activity was 52.8, up from 51.5 in April and ahead of forecasts for 52.0. Another report showed that U.S. construction spending rose to the highest level in six-and-a-half years in April, adding to recent signs that the economy is rebounding from a weak first quarter. The Commerce Department said construction spending jumped 2.2% to an annual rate of $1.0 trillion, the highest since November 2008.
Elsewhere, the kiwi was lower against the Australian dollar.
Earlier today, the Reserve Bank of Australia left its benchmark interest rate at a record-low of 2.00%, in a widely expected move.
Commenting on the decision, RBA Governor Glenn Stevens said monetary policy will remain “accommodative,” leaving the door open for further rate cuts.
Later in the day, the U.S. is to report on factory orders.