Investing.com - The New Zealand dollar dropped against its U.S. counterpart during Thursday’s Asian session as riskier assets of nearly all stripes remained out of favor with investors.
In Asian trading Thursday, NZD/USD dropped 0.26% to 0.7951. The pair was likely to find support at 0.7943, the low of June 3 and resistance at 0.8119, the high of June 3.
The kiwi now hovers near a nine-month low against the greenback amid growing uncertainty over the future of the Federal Reserve's stimulus program. That scenario is proving to be a source of consternation for the kiwi because the weaker New Zealand currency should be good news for stocks there.
That has not been the case as the kiwi and New Zealand stocks appear to be falling in tandem in recent weeks. Kiwi bulls are eager for some respite after currency plunged 6.5% last month.
Stocks in the U.S. plunged Wednesday, casting a pall over other regions, amid concerning economic news. Normally, slack data points would be portrayed as an opportunity for the Federal Reserve to continue monetary easing.
However, momentum has swung over to the notion that the Fed’s bond-buying activities will soon end and that is weighing on riskier assets such as equities and the kiwi.
In U.S. economic news out Wednesday, the ADP private payroll survey showed non-government U.S. employers added 135,000 new jobs last month. Economists expected the addition of 167,000 non-government jobs. The U.S. Labor Department delivers the May jobs number on Friday.
The Institute for Supply Management said its May services index rose to 53.7% from 53.1% in April. Economists expected a May reading of 54%. Readings above 50% indicate expansion.
Elsewhere, NZD/JPY inched down 0.07% to 78.90 while AUD/NZD dropped 0.15% to 1.1957.
In Asian trading Thursday, NZD/USD dropped 0.26% to 0.7951. The pair was likely to find support at 0.7943, the low of June 3 and resistance at 0.8119, the high of June 3.
The kiwi now hovers near a nine-month low against the greenback amid growing uncertainty over the future of the Federal Reserve's stimulus program. That scenario is proving to be a source of consternation for the kiwi because the weaker New Zealand currency should be good news for stocks there.
That has not been the case as the kiwi and New Zealand stocks appear to be falling in tandem in recent weeks. Kiwi bulls are eager for some respite after currency plunged 6.5% last month.
Stocks in the U.S. plunged Wednesday, casting a pall over other regions, amid concerning economic news. Normally, slack data points would be portrayed as an opportunity for the Federal Reserve to continue monetary easing.
However, momentum has swung over to the notion that the Fed’s bond-buying activities will soon end and that is weighing on riskier assets such as equities and the kiwi.
In U.S. economic news out Wednesday, the ADP private payroll survey showed non-government U.S. employers added 135,000 new jobs last month. Economists expected the addition of 167,000 non-government jobs. The U.S. Labor Department delivers the May jobs number on Friday.
The Institute for Supply Management said its May services index rose to 53.7% from 53.1% in April. Economists expected a May reading of 54%. Readings above 50% indicate expansion.
Elsewhere, NZD/JPY inched down 0.07% to 78.90 while AUD/NZD dropped 0.15% to 1.1957.