The New Zealand dollar advanced against most major rivals in late Asian deals on Friday, as investor sentiment rose amid reports that the People's Bank of China is planning to provide more liquidity for lending and investment, as China's economic growth slows even after a series of stimulus measures taken in previous months.
The Chinese central bank would relax lending rules by allowing the banks to include more money in their deposit base to provide for loans.
According to reports, the PBOC will relax rules for the calculation of the loan-to-deposit ratio, thereby allowing the banks to lend more. At present, Chinese banks are not able to lend more than 75 percent of their total deposits, but that calculation excludes large deposits from nonbank financial institutions such as asset managers and securities firms. The new move would enable banks to add those deposits to their calculations of their loan-to-deposit ratios.
The kiwi hit a 2-day high of 0.7743 against the greenback, up from yesterday's closing value of 0.7717. The next possible resistance for the kiwi-greenback pair is seen around the 0.78 zone.
The kiwi that closed yesterday's deals at 1.5788 against the euro inched up to 1.5761. If the kiwi extends rise, 1.57 is seen as its next possible resistance level.
The kiwi inched up to 93.09 against the yen, compared to 92.93 hit at Thursday's close. The kiwi is likely to find upside target around the 95.00 mark.
Japan's consumer prices grew at a slower than expected pace in November, a report from the Ministry of Internal Affairs and Communication showed.
Consumer prices rose 2.4 percent year-over-year in November following the 2.9 percent growth in the previous month. This was slower than the 2.5 percent increase expected by economists.
On the flip side, the New Zealand dollar reversed from an early high of 1.0465 against the aussie and fell to 1.0500 in the Asian morning session. The pair held steady since then.
There are no major economic data in the European session.
The material has been provided by InstaForex Company – www.instaforex.com