The New Zealand dollar gained after figures showed China's exports and imports were stronger than expected, helping soothe concerns the world's second-largest economy isn't growing fast enough to underpin global growth.
The kiwi traded at 78.72US cents at 5pm in Wellington, from 78.19 cents at the start of the day
and from 78.14 cents in late New York trading on Friday. The trade-weighted index rose to 76.57 from 76.50.
Chinese exports rose 15.3 percent in September from a year earlier, beating the 12 percent expectation in a Bloomberg survey, while imports rose 7 percent, against expectations of a decline, leaving China with a US$31 billion trade surplus. Imports of iron ore rose 16.5 percent and for copper gained 10.5 percent, suggesting China's manufacturing base is still hungry for raw materials.
The data comes after the International Monetary Fund and various central bankers expressed concern at the weekend that the pace of global growth is faltering. China Finance Minister Zhou Xiaochuan told the IMF's International Monetary and Financial Committee that his country's economic growth is expected to continue at a 7.4 percent annual rate of growth. China is New Zealand's largest market.
"This has given a glimmer of hope that in Asia things are not doing so badly," said Stuart Ive, senior dealer at OMF. "That's given the Australian dollar and ourselves a bit of a boost ahead of the dairy auction this week."
