Wednesday during early Asian deals, the New Zealand dollar slipped against the currencies of US, Europe and Japan despite a rise in most Asian stocks. The kiwi thus eased from a 2-day high against the yen. On the other hand, the kiwi recovered slightly from a 6-day low against the aussie.
The New Zealand stock market opened sharply higher today, prompted by a late overnight Wall Street rally that helped most US stocks to regain the loses made earlier in the day over economic concerns in Europe and geopolitical concerns in the Koreas.
The benchmark NZX 50 index is currently trading at 3,020.90 – up 17.08 points or 0.57% over its previous close.
After a brief uptrend, the New Zealand dollar weakened against the US currency in early Asian deals on Wednesday. At present, the kiwi-greenback pair is worth 0.6651, down from yesterday’s close of 0.6710. If the NZ dollar slides further, it may likely target the 0.656 level.
The New Zealand dollar that strengthened to a 2-day high of 60.76 against the Japanese yen in early Wednesday Asian deals at 5:25 pm ET lost ground thereafter. As of now, the kiwi-yen pair is worth 60.0 with 58.7 seen as the next downside target level. The pair closed yesterday’s trading at 60.56.
Japan’s corporate service price index for April and the Bank of Japan’s April 30 meeting minutes, which were released today likely influenced the yen.
The New Zealand dollar recovered slightly against the Aussie after touching a 6-day low of 1.2393 in early Wednesday Asian deals at 8:55 pm ET. The aussie-kiwi pair is currently worth 1.2354, compared to 1.2367 hit late New York Tuesday. The next upside target level for the kiwi is seen at 1.226.
The Aussie surged up in early Asian deals as the Westpac Bank/Melbourne Institute leading index, released today, showed an 8.7 percent gain in April from March. This follows a 7.2 percent March gain over February.
During early Asian deals on Wednesday, the New Zealand dollar declined against the euro. The euro-kiwi pair that closed yesterday’s trading at 1.8420 is presently worth 1.8462. If the kiwi slips further, it may find near term support around the 1.856 level.
Looking ahead, Japan’s small business confidence index for May is due at 1:00 am ET.
The German GfK consumer confidence index for June, French consumer spending for April and business confidence indicator for May are expected in the European session.
The U.S. durable goods orders and the new home sales data – both for April have been slated for release in the North American session.