Investing.com - The New Zealand dollar rose slighly despite comments from the deputy central bank governor that the high exchange rate is a cause for concern.
NZD/USD traded at 0.8642, up 0.05%, after the comments.
New Zealand housing market prices and the exchange rate are important variables for the pace and timing of interest rate hikes, Reserve Bank of New Zealand Deputy Governor Grant Spencer said Friday.
The RBNZ has raised the OCR 25 basis points twice since March to 3.00% now.
"A big uncertainty is the future path of the exchange rate, which has a major bearing on traded goods prices and overall economic activity," he said."The more downward pressure that the exchange rate exerts on prices and activity, the less pressure will need to be exerted by interest rates."
Reserve Bank of Australia Assistant Governor Guy Debelle is due to speak at an event in Sydney at 1300 local time (0300 GMT) after the central bank publishes it quarterly Statement of Monetary Policy at 1130 local time (0130 GMT) with a downward revision to inflation and growth forecasts possible.
AUD/USD traded at 0.9370, down 0.05%.
At 0930 in Beijing (0130 GMT), China's April CPI and PPI data are due. April CPI is forecast at a gain of 2.0% year-on-yeary and a drop of 0.1% on month. PPI is forecast to fall 1.9% year-on-year.
Overnight, the dollar edged higher against most major currencies after European Central Bank President Mario Draghi hinted that monetary authorities would be okay with implementing fresh stimulus measures in June.
The European Central Bank earlier left interest rates unchanged at 0.25%, though the euro dropped after Draghi said the ECB governing council is comfortable with acting at its next meeting in June, after the bank has published fresh forecasts for inflation and growth.
Draghi attributed weak inflation rates to food and energy prices, but added that the strong euro and weak domestic demand are also suppressing inflation rates.
Meanwhile in the U.S., the Department of Labor reported that number of individuals filing for unemployment assistance last week fell by 26,000 to 319,000 from the previous week’s revised total of 345,000.
Analysts had expected jobless claims to fall by 20,000 to 325,000.
The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.01% at 79.48.