The New Zealand dollar weakened further against the other major currencies in the Asian session on Friday after data showed that business confidence in New Zealand tumbled further to a 6-year low in July, boosting the possibility of more rate cuts.

Data from the ANZ Bank showed that business confidence in New Zealand tumbled further in July, with an index score of -15.3. That's down from -2.3 in June, which had been the first negative score for the index since March 2011.

In a speech, Reserve Bank governor Graeme Wheeler said earlier this week further cuts to interest rates were likely this year, due to weak dairy prices and a deteriorating external trade position.

Traders also speculate that the RBNZ remains in easing mode as the U.S. Federal Reserve have inched toward its first rate hike.

At the same time, the ANZ Activity Outlook survey for July also showed disappointing results, with the corresponding indicator coming in at +19, down from 23.6 in the previous month.

Meanwhile, commodity prices fell, especially that of dairy products, which are the nation's biggest export.

Thursday, the NZ dollar fell 0.94 percent against the U.S. dollar, 0.77 percent against the yen, 0.12 percent against the euro and percent 0.64 against the Australian dollar.

In the Asian trading today, the NZ dollar fell to a 1-week low of 1.1093 against the Australian dollar, from yesterday's closing value of 1.1039. The kiwi may now test support near the 1.12 region.

Data from the Australian Bureau of Statistics showed that the final demand producer prices in Australia were up 0.3 percent on quarter in the second quarter of 2015, following the 0.5 percent increase in Q1. On a yearly basis, PPI climbed 1.1 percent after gaining 0.7 percent in the three months prior.

Against the euro and the yen, the kiwi dropped to 3-day lows of 1.6644 and 81.47 from yesterday's closing quotes of 1.6547 and 81.93, respectively. If the kiwi extends its downtrend, it is likely to find support around 1.68 against the euro, 80.00 against the yen

The kiwi edged down to 0.6568 against the U.S. dollar, from yesterday's closing value of 0.6600. On the downside, 0.64 is seen as the next support level for the kiwi.

Looking ahead, Japan housing starts and construction orders for June are due to be released at 1:00 am ET. Subsequently, German retail sales data for June is slated for release at 2:00 am ET.

Eurozone unemployment rate for June and CPI for July are set to be published later in the day.

In the New York session, Canada GDP for May, U.S. Chicago PMI for July and University of Michigan's final U.S. consumer sentiment index for July are due.

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