The New Zealand dollar weakened against most of its major rivals on Tuesday morning in Asia as a decline in Asian stocks prompted risk averse traders to flee from higher-yielding currencies. The kiwi fell to a 4-day low against the currencies of the U.S. and Japan.
As of 11:50 pm ET, the New Zealand’s NZX-50 traded lower at 0.02%, Japan’s Nikkei Stock Average fell 0.88%, South Korea’s Kospi Composite dropped 1.13%, Taiwan’s weighted average declined 0.53%, Australia’s All ordinaries index slumped 1.22% and China’s Shanghai composite was down 0.08%.
The NZ dollar fell to a 4-day low of 61.41 against the yen around 11:45 pm ET and the pair moved sideways thereafter. The kiwi-yen pair is presently worth 61.44 with 61.0 seen as the next likely support level.
The New Zealand dollar also slipped to a 4-day low of 0.7485 against the greenback by 9:10 pm ET, compared to 0.7509 hit late New York Tuesday. On the downside, the NZ dollar may target support around the 0.7430 level. Currently, the kiwi-buck pair is trading at 0.75.
The NZ dollar reached as low as 1.8526 against the euro before holding steady around 11:40 pm ET. The euro-kiwi pair that was worth 1.8467 at Monday’s North American close is currently quoted at 1.8502. If the kiwi weakens further, 1.8550 is seen as the next likely support level in near-term.
On the flip side, the NZ dollar edged higher to 1.3064 against the Australian dollar around 11:45 pm ET, mainly due to across the board weakening of the latter. The aussie-kiwi pair that finished Monday’s North American trading at 1.3094 is presently quoted at 1.3070.
Business confidence in Australia decreased in September, according to the latest survey results from National Australia Bank. NAB’s Business Confidence index was 10.0 for September compared to 11.0 in August.
The bank’s index of Business Conditions, which measures current conditions, improved 2.0 points to 7.0. Both readings remained above 0.0, which separates optimists from pessimists.
Looking ahead, Japan is set to release its consumer confidence data for September at 1:00 am ET.
German CPI, WPI-both for September and the French current account data for August are expected in the upcoming European session.
The US Federal Open Market Committee will release the minutes of its September policy meeting at 2:00 pm ET.