Monday, the New Zealand dollar slipped against other major currencies on the back of a slide in regional stocks and a dismal domestic business confidence data. The kiwi fell to a 5-day low against the aussie.
New Zealand’s benchmark NZX 50 index closed at 3,008.41 – down 25.70 points or 0.85% over its previous close.
Apart from the New Zealand, the stock markets in China, Australia and Japan also closed lower today.
But the Hong Kong, South Korea, Taiwan, Singapore and the Indonesian stocks closed higher.
In economic news, New Zealand business confidence weakened in June, a survey from the National Bank of New Zealand showed today. A net 40.2% of respondents expect general business conditions to improve in 12 month’s time. But this was down 8 points from the previous month.
Further, a net 38.5% forecast activity for their own business to be better over the year ahead, down from a net 45.3% in May. The biggest decline in own activity expectation was in the services sector. Overall profit expectations fell around 5 points to a net 18.8% expecting an improvement in the year ahead.
Against its Australian counterpart, the NZ dollar slipped in early deals on Monday. As of now, kiwi is trading at a 5-day low of 1.2348 against the aussie, compared to last week’s close of 1.2255. If the kiwi slips further, it may find support around the 1.230 level.
The NZ dollar has been extending its downtrend against the U.S. dollar and the yen during early European session on Monday. Presently, the kiwi is trading at 0.7078 against the greenback and 63.31 against the yen, compared to last week’s closing quotes of 0.7154 and 63.92, respectively.
On the downside, the kiwi may target around 0.70 against the greenback and 62.70 against the yen.
The kiwi lost ground against the common currency of Europe in early European deals on Monday. Currently, the kiwi is worth 1.7503 against the euro and this level may be compared to last week’s closing quote of 1.7328. If the kiwi drops further, it may target around the 1.754 level.
There are no market moving data due from Europe today.
From the U.S., the personal income and spending data-both for May are slated for release at 8:30 am ET.