Kiwi Extends Fall
January 20 2015 - 11:40PM
RTTF2
The New Zealand dollar extended declines against the other major
currencies in the early Asian session on Wednesday after quarterly
consumer price inflation data released earlier in the day showed
that the nation slipped into deflation.
Data released by the Statistics New Zealand showed that consumer
prices in New Zealand were down 0.2 percent on quarter in the
fourth quarter of 2014. This missed expectations for a flat reading
following three straight quarters of 0.3 percent gain.
On a yearly basis, consumer prices climbed 0.8 percent - also
below forecasts for 0.9 percent and down from 1.0 percent in the
previous three months.
Tuesday, the NZ dollar fell 1.73 percent against the U.S.
dollar, 0.74 percent against the yen, 1.22 percent against the euro
and 1.25 percent against the Australian dollar.
In the early Asian trading today, the NZ dollar fell to a
1-1/2-month low of 1.0710 against the Australian dollar and more
than a 2-week low of 0.7622 against the U.S. dollar from
yesterday's early highs of 1.0533 and 0.7781, respectively. The
kiwi is likely to find support around 1.08 against the aussie and
0.75 against the greenback.
Against the euro, the kiwi slipped to a 5-day low of 1.5147 from
yesterday's early highs of 1.4885 and held steady thereafter.
The kiwi dropped to a 1-week low of 90.38 against the yen, from
yesterday's closing quote of 90.72. If the kiwi extends its
downtrend, it is likely to find support around the 89.79 area.
Looking ahead, U.K. unemployment rate for November, claimant
count rate for December and Bank of England's minutes from its
January policy meeting and Switzerland ZEW survey economic
expectation index for January are due to be released in the
European session.
In the New York session, U.S. building permits and housing
starts for December and Canada wholesale sales data for November
are scheduled for release.
At 7:00 am ET, Bank of England Deputy Governor Minouche Shafik
will deliver a speech on financial markets in Brussels.
At 10:00 am ET, the Bank of Canada will announce its decision on
interest rates and release its quarterly monetary policy report.
Economists expect the key rate to be kept unchanged at 1.00
percent. Subsequently, Bank of Canada Governor Stephen Poloz and
Senior Deputy Governor Carolyn Wilkins are due top hold a news
conference to explain the rate decision and the monetary policy
report.
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