Investing.com - The New Zealand dollar traded lower against its U.S. rival during Wednesday’s Asian session despite a better-than-expected current account deficit report.
In Asian trading Wednesday, NZD/USD fell 0.21% to 0.8222. The pair was likely to find support at 0.8038, the low of September 11 and resistance at 0.8272, the high of May 16.
Earlier Wednesday, Statistics New Zealand said the country’s current account deficit narrowed more than expected to NZD9.1 billion in June. That equals 4.3% of GDP. Economists expected a reading of 4.8% of GDP.
The previous reading of New Zealand’s current account deficit was revised to NZD9.5 billion or 4.5% of GDP, from NZD10.1 billion, or 4.8% of GDP. Statistics New Zealand said the account deficit narrowed in part due to lower profits earned in the country by foreign companies.
Statistics New Zealand also added that the government’s liabilities to international creditors decreased by NZD4.5 billion to NZD7.8 billion.
The kiwi also traded lower ahead of a possible tapering announcement from the Federal Reserve later Wednesday. While the Fed has committed to keep interest rates low, some reduction in the central bank’s USD85 billion-per-month bond-buying program is expected. Tapering to the tune of USD10 billion to USD15 billion is expected by many market participants.
Most market observers do not expect tapering, now being referred to in some corners as "tapering lite," to impact markets much because ongoing speculation should have allowed markets to effectively price in the specter of reduced U.S. easing.
Elsewhere, NZD/JPY inched down 0.05% to 81.62 while AUD/NZD rose 0.07% to 1.1368.
In Asian trading Wednesday, NZD/USD fell 0.21% to 0.8222. The pair was likely to find support at 0.8038, the low of September 11 and resistance at 0.8272, the high of May 16.
Earlier Wednesday, Statistics New Zealand said the country’s current account deficit narrowed more than expected to NZD9.1 billion in June. That equals 4.3% of GDP. Economists expected a reading of 4.8% of GDP.
The previous reading of New Zealand’s current account deficit was revised to NZD9.5 billion or 4.5% of GDP, from NZD10.1 billion, or 4.8% of GDP. Statistics New Zealand said the account deficit narrowed in part due to lower profits earned in the country by foreign companies.
Statistics New Zealand also added that the government’s liabilities to international creditors decreased by NZD4.5 billion to NZD7.8 billion.
The kiwi also traded lower ahead of a possible tapering announcement from the Federal Reserve later Wednesday. While the Fed has committed to keep interest rates low, some reduction in the central bank’s USD85 billion-per-month bond-buying program is expected. Tapering to the tune of USD10 billion to USD15 billion is expected by many market participants.
Most market observers do not expect tapering, now being referred to in some corners as "tapering lite," to impact markets much because ongoing speculation should have allowed markets to effectively price in the specter of reduced U.S. easing.
Elsewhere, NZD/JPY inched down 0.05% to 81.62 while AUD/NZD rose 0.07% to 1.1368.