Investing.com - The New Zealand dollar dropped to two-week lows against its U.S. counterpart on Wednesday, after downbeat comments by Reserve Bank of New Zealand Governor Graeme Wheeler led to expectations for an upcoming rate cut.
NZD/USD hit 0.8362 during late Asian trade, the pair's lowest since April 22; the pair subsequently consolidated at 0.8391, retreating 0.79%.
The pair was likely to find support at 0.8340, the low of March 26 and resistance at 0.8467, the session high.
In the RBNZ's May 2013 Financial Stability Report, bank governor Wheeler said developments in private sector credit and the housing market point to increasing risks to financial stability in New Zealand.
He also said that further price escalation will worsen the potential damage that could result from a housing downturn following an economic or financial shock.
The comments sparked fresh speculation over a potential rate cut by the central bank at its next policy meeting.
The kiwi was also sharply lower against the euro with EUR/NZD jumping 1.03%, to hit 1.5620.
Also Wednesday, Official data showed that Chinese imports and exports rose more than expected in April, indicating that the outlook for economic growth remains good.
China's exports rose 14.7% year-on-year last month, while imports grew 16.8%, bringing the country’s trade surplus to USD18.6 billion for the month, above expectations for a surplus of USD 15.05 billion.
China is New Zealand's second biggest export partner.
NZD/USD hit 0.8362 during late Asian trade, the pair's lowest since April 22; the pair subsequently consolidated at 0.8391, retreating 0.79%.
The pair was likely to find support at 0.8340, the low of March 26 and resistance at 0.8467, the session high.
In the RBNZ's May 2013 Financial Stability Report, bank governor Wheeler said developments in private sector credit and the housing market point to increasing risks to financial stability in New Zealand.
He also said that further price escalation will worsen the potential damage that could result from a housing downturn following an economic or financial shock.
The comments sparked fresh speculation over a potential rate cut by the central bank at its next policy meeting.
The kiwi was also sharply lower against the euro with EUR/NZD jumping 1.03%, to hit 1.5620.
Also Wednesday, Official data showed that Chinese imports and exports rose more than expected in April, indicating that the outlook for economic growth remains good.
China's exports rose 14.7% year-on-year last month, while imports grew 16.8%, bringing the country’s trade surplus to USD18.6 billion for the month, above expectations for a surplus of USD 15.05 billion.
China is New Zealand's second biggest export partner.