Investing.com - The New Zealand dollar eased in Asian trade on Thursday as quarterly gross domestic product data fell short of expectations.
First quarter GDP rose 1.0% in New Zealand, compared to a forecasted 1.2% gain quarter-on-quarter.
NZD/USD fell after the data to 0.8720, down 0.14%
Overnight, the dollar traded largely lower against most major currencies after the Federal Reserve reiterated interest rates will stay low for some time to come.
In early trade Thursday USD/JPY held at 101.93, up 0.02%, while AUD/USD traded at 0.9394, down 0.12%, and EUR/USD at 1.3586, down 0.06%.
The U.S. central bank also cut its 2014 economic growth forecast to 2.1%- 2.3% from an earlier 2.9% forecast, which came as no huge surprise to investors, though the dollar did slide.
The Federal Reserve on Wednesday said it was leaving its benchmark interest rate unchanged at 0.00-0.25% but said it would cut its monthly bond-buying program to $35 billion from $45 billion.
Fed bond purchases weaken the dollar, though Fed language suggesting interest rates will stay low for the foreseeable future kept the greenback in Wednesday afternoon trading.
The Fed pointed out that economic activity has rebounded and added the labor market continued to strengthen though monetary authorities still see room for more improvement.
The U.S. central bank said highly accommodative policy remains appropriate to keep recovery on track and added additional stimulus tapering is likely if inflation rates and the labor market continue to improve.
"The Committee continues to anticipate, based on its assessment of these factors, that it likely will be appropriate to maintain the current target range for the federal funds rate for a considerable time after the asset purchase program ends, especially if projected inflation continues to run below the Committee's 2 percent longer-run goal, and provided that longer-term inflation expectations remain well anchored," the Fed said.
"The Committee currently anticipates that, even after employment and inflation are near mandate-consistent levels, economic conditions may, for some time, warrant keeping the target federal funds rate below levels the Committee views as normal in the longer run."
The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.03% at 80.48.
On Thursday, the U.S. is to publish the weekly report on initial jobless claims as well as a report on manufacturing activity in the Philadelphia region.