2024.01.0405:15:00UTC+00NZ Dollar Rises On Strong China Services PMI Data

The New Zealand dollar strengthened against other major currencies in the Asian session on Thursday, after China's service sector growth accelerated at the end of the year with solid increase in new business.

Data from S&P Global showed that the Caixin services Purchasing Managers' Index rose to 52.9 in December from 51.5 in November. The reading was forecast to rise slightly to 51.6. A score above 50.0 indicates expansion.

The composite output index that combines manufacturing and services activity posted 52.6 in December, up from 51.6 in November.

Crude oil prices rebounded, regaining ground on concerns about further attacks by Houthi militants against ships in the Red Sea. West Texas Intermediate crude for February delivery surged $2.32 or 3.3 percent to $72.70 a barrel.

In the Asian trading today, the NZ dollar rose to 6-day highs of 89.81 against the yen and 1.0757 against the Australian dollar, from yesterday's closing quotes of 89.50 and 1.0768, respectively. If the kiwi extends its uptrend, it is likely to find resistance around 91.00 against the yen and 1.06 against the aussie.

Against the euro, the kiwi advanced to a 2-day high of 1.7437 from yesterday's closing value of 1.7474. On the upside, 1.73 is seen as the next resistance level for the kiwi.

The kiwi edged up to 0.6269 against the U.S. dollar, from Wednesday's closing value of 0.6247. The next possible upside target for the kiwi is seen around the 0.67 region.

Looking ahead, Services PMI reports from various European economies and U.K. for December and U.K. mortgage approvals data for November are due to be released in the European session.

In the New York session, U.S. weekly jobless claims, U.S. and Canada services PMI data for December and U.S. EIA crude oil data are slated for release.