Investing.com - The New Zealand dollar climbed to more than one-month highs against its U.S. counterpart on Monday, as the release of upbeat Chinese manufacturing data supported demand for the export-related currency.
NZD/USD hit 0.8749 during late Asian trade, the pair's highest since May 6; the pair subsequently consolidated at 0.8739, climbing 0.49%.
The pair was likely to find support at 0.8655, the low of June 18 and resistance at 0.8780, the high of May 6.
A report earlier showed that China’s HSBC manufacturing purchasing managers’ index came in at 50.8 in June, up from a final reading of 49.4 in May. It was the first time the index has risen above the 50 level separating growth from contraction in six months.
The data eased fears over recent signs of a slowdown in the world’s second largest economy.
Meanwhile, the greenback remained under pressure after Federal Reserve gave no indication last week of when interest rates could start to rise. In addition, the Fed’s forecast of where interest rates might reach in the long term fell from 4% to 3.75%.
The kiwi was little changed against the Australian dollar, with AUD/NZD inching up 0.02% to 1.0798.
Later in the day, the U.S. was to release preliminary data on manufacturing activity and private sector data on existing home sales.