Investing.com – The New Zealand dollar fell on Thursday in Asia despite third quarter GDP rising 1.4%, beating expectations of a 1.1% gain, while the dollar showed strength across most of the market on the Federal Reserve's move to trim asset purchases.
NZD/USD traded at 0.8212 down 0.32%, with the data overshadowed by USD strength.
The Australian dollar also fell against USD on Thursday morning trade after the Federal Reserve said it was trimming its USD85 billion monthly bond-buying program by USD10 billion. Fed asset purchases, in place for 15 months now, have weakened the dollar by depressing interest rates to spur on economic recovery. However Yen rose slightly in the early morning trade.
AUD/USD traded at 0.8842, down 0.19%.
But USD/JPY traded at 104.16, down 0.12%, in Asia as the Bank of Japan kicked off its two-day policy board meeting with a statement due on Friday.
The Federal Reserve on Wednesday left its key benchmark lending target, the fed funds rate, unchanged at 0.0-0.25% but said it was cutting the amount of Treasury holdings and mortgage debt it buys from banks each month to USD75 billion from USD85 billion.
However, the Fed said overall monetary policy, including interest rates at rock-bottom levels, will stay accommodative until the unemployment rate dips below 6.5%, a figure previously seen as the threshold at which the U.S. central bank would rethink policy.
The Fed added it could beef up its asset-purchasing program should recovery gain steam or deteriorate.
"If incoming information broadly supports the Committee's expectation of ongoing improvement in labor market conditions and inflation moving back toward its longer-run objective, the Committee will likely reduce the pace of asset purchases in further measured steps at future meetings," the Fed's policy statement said.
"However, asset purchases are not on a preset course, and the Committee's decisions about their pace will remain contingent on the Committee's outlook for the labor market and inflation as well as its assessment of the likely efficacy and costs of such purchases," the Fed added.
"The Committee now anticipates, based on its assessment of these factors, that it likely will be appropriate to maintain the current target range for the federal funds rate well past the time that the unemployment rate declines below 6.5% percent, especially if projected inflation continues to run below the Committee's 2% longer-run goal," the Fed said.
Elsewhere, the Census Bureau reported earlier that U.S. housing starts rose to 1.09 million units in November from 890,000 in October, beating consensus forecasts for an increase to 950,000 units.
The U.S. dollar index traded at 80.66, up 0.05%.
NZD/USD traded at 0.8212 down 0.32%, with the data overshadowed by USD strength.
The Australian dollar also fell against USD on Thursday morning trade after the Federal Reserve said it was trimming its USD85 billion monthly bond-buying program by USD10 billion. Fed asset purchases, in place for 15 months now, have weakened the dollar by depressing interest rates to spur on economic recovery. However Yen rose slightly in the early morning trade.
AUD/USD traded at 0.8842, down 0.19%.
But USD/JPY traded at 104.16, down 0.12%, in Asia as the Bank of Japan kicked off its two-day policy board meeting with a statement due on Friday.
The Federal Reserve on Wednesday left its key benchmark lending target, the fed funds rate, unchanged at 0.0-0.25% but said it was cutting the amount of Treasury holdings and mortgage debt it buys from banks each month to USD75 billion from USD85 billion.
However, the Fed said overall monetary policy, including interest rates at rock-bottom levels, will stay accommodative until the unemployment rate dips below 6.5%, a figure previously seen as the threshold at which the U.S. central bank would rethink policy.
The Fed added it could beef up its asset-purchasing program should recovery gain steam or deteriorate.
"If incoming information broadly supports the Committee's expectation of ongoing improvement in labor market conditions and inflation moving back toward its longer-run objective, the Committee will likely reduce the pace of asset purchases in further measured steps at future meetings," the Fed's policy statement said.
"However, asset purchases are not on a preset course, and the Committee's decisions about their pace will remain contingent on the Committee's outlook for the labor market and inflation as well as its assessment of the likely efficacy and costs of such purchases," the Fed added.
"The Committee now anticipates, based on its assessment of these factors, that it likely will be appropriate to maintain the current target range for the federal funds rate well past the time that the unemployment rate declines below 6.5% percent, especially if projected inflation continues to run below the Committee's 2% longer-run goal," the Fed said.
Elsewhere, the Census Bureau reported earlier that U.S. housing starts rose to 1.09 million units in November from 890,000 in October, beating consensus forecasts for an increase to 950,000 units.
The U.S. dollar index traded at 80.66, up 0.05%.