The New Zealand dollar rose to $0.569 on Friday, heading for a weekly advance, supported by encouraging manufacturing data. The country’s manufacturing sector expanded for a fourth straight month in October, driven by rising new orders and improved demand. The kiwi also benefited from a weaker US dollar as investors worry that the upcoming release of delayed economic reports, following the end of the country’s longest government shutdown, may reveal a slowing US economy. However, upside for the currency remains limited amid expectations that the Reserve Bank of New Zealand will ease policy again at its meeting later this month, reinforced by soft jobs data and a subdued inflation outlook. Markets are largely pricing in a 25bps rate cut, with a 10% chance of a larger 50bps move. For the week, the New Zealand dollar is up more than 1%, poised to snap a two-week losing streak.
