NZ Dollar Extends Fall As Traders Bet On RBNZ Rate Cut
23 September 2016 - 11:44AM
RTTF2
The New Zealand dollar continued to be weak against other major
currencies in the Asian session on Friday, as traders bet that the
central bank is likely to cut its interest rates in November.
Meanwhile, the Reserve Bank of New Zealand on Thursday kept its
Official Cash Rate at the record low of 2.00 percent. Low inflation
was a key factor in allowing the bank to stand pat, RBNZ Governor
Graeme Wheeler noted.
RBNZ also hinted that further easing may be appropriate,
depending on the results of forthcoming economic data.
Thursday, the NZ dollar fell against its most major rivals, as
the Reserve Bank of New Zealand's statement hinted that further
easing is closer on the horizon than previously expected, after
maintaining its Official Cash Rate at the record low.
The NZ dollar fell 0.05 percent against the yen, 0.62 percent
against the euro and 0.89 percent against the Australian dollar.
The NZ dollar rose against the U.S. dollar
In the Asian trading, the NZ dollar fell to nearly a 5-week low
of 1.0489 against the Australian dollar, a 1-week low of 1.5389
against the euro and a 4-day low of 0.7276 against the U.S. dollar,
from yesterday's closing quotes of 1.0448, 1.5322 and 0.7311,
respectively. If the kiwi extends its downtrend, it is likely to
find support around 1.06 against the aussie, 1.55 against the euro
and 0.71 against the greenback.
Against the yen, the kiwi edged down to 73.57 from an early high
of 73.78. The kiwi may test support near the 72.00 region.
Looking ahead, flash PMI reports from major European economies
for September are due to be released later in the day.
In the New York session, Canada retail sales for July and CPI
data for August, Markit's U.S. flash manufacturing PMI for
September and U.S. Baker Hughes rig count data are slated for
release.
At 9:00 am ET, U.S. Treasury Secretary Jack Lew and Treasury
Deputy Secretary Sarah Bloom Raskin will participate in the
Freedman Bank Forum, in Washington.
At 12:00 pm ET, Federal Reserve Bank of Philadelphia President
Patrick Harker, Cleveland Fed President Loretta Mester and Atlanta
Fed President Dennis Lockhart are expected to participate in
"Presidents' Perspectives: The Fed's Role in Our Communities"
closing plenary before the "Reinventing Our Communities:
Transforming Our Economies," a conference hosted by the Federal
Reserve Bank of Philadelphia .
At 12:30 pm ET, Federal Reserve Bank of Dallas President Robert
Kaplan participates in moderated Q&A before the Independent
Bankers Association of Texas Annual Convention, in San Antonio.
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