Positive US data supported a late rally in the kiwi yesterday after it fell sharply on falling equities

The kiwi dollar erased early losses yesterday as positive further positive data in the US attracted investors to the higher-risk currency.

• In early trading the pound gained steadily, benefiting from a hefty loss in global shares, which encouraged investors to trim their exposure to risk.
  
• Investors retreated from risk assets as European share prices fell 2% in the wake of renewed concerns over the banking sector.
  
• In the afternoon session though, data revealed that US Factory orders increased 0.9% in September, following an unrevised 0.8 decline in August, the fifth increase in the last six months.
  
• The data added to a string of positive economic figures that have come out of the US recently and boosted confidence over the strength of the global recovery, lending support to the New Zealand currency.
  
• In trading this morning, the kiwi is trading marginally higher with the price currently hovering just below 2.28.