Investing.com - The New Zealand dollar traded lower against its U.S. rival during Wednesday’s Asian session following some New Zealand economic news, but the conclusion of the Federal Reserve’s meeting later Wednesday may be what is really on traders’ minds.
In Asian trading Wednesday, NZD/USD fell 0.19% to 0.7977. The pair was likely to find support at 0.7896, the low of June 13 and resistance at 0.8062, the high of June 5.
Investors remained cautious amid growing expectations that the Federal Reserve will to start to unwind its USD85 billion-a-month bond purchasing program later this year. The end of quantitative easing could pressure riskier currencies such as the kiwi.
Earlier Wednesday, Statistics New Zealand said that New Zealand’s current account balance fell to a seasonally adjusted to NZD660 million in the first quarter from NZD3.26 billion in the fourth quarter. Analysts expected a decline to NZD600 million.
The kiwi came under pressure Tuesday following some fair data points out of the U.S. In U.S. economic news out Tuesday, the Labor Department said the U.S. consumer price index rose 0.1% last month after falling 0.4% in April. Economists expected a 0.2% increase. Excluding food and energy prices, the index was up 0.2% as expected.
The Commerce Department said housing starts rose 6.8% in May to a 914,000 annualized rate from a revised 856,000 in April. Applications for single-family homes jumped to 622,000, the highest level in more than five years.
Elsewhere, AUD/NZD fell 0.10% to 1.1860 as the kiwi is now found near its highest levels in three weeks against the Australian dollar.
NZD/JPY inched up 0.02% to 76.20 while EUR/NZD rose 0.21% to 1.6799.
In Asian trading Wednesday, NZD/USD fell 0.19% to 0.7977. The pair was likely to find support at 0.7896, the low of June 13 and resistance at 0.8062, the high of June 5.
Investors remained cautious amid growing expectations that the Federal Reserve will to start to unwind its USD85 billion-a-month bond purchasing program later this year. The end of quantitative easing could pressure riskier currencies such as the kiwi.
Earlier Wednesday, Statistics New Zealand said that New Zealand’s current account balance fell to a seasonally adjusted to NZD660 million in the first quarter from NZD3.26 billion in the fourth quarter. Analysts expected a decline to NZD600 million.
The kiwi came under pressure Tuesday following some fair data points out of the U.S. In U.S. economic news out Tuesday, the Labor Department said the U.S. consumer price index rose 0.1% last month after falling 0.4% in April. Economists expected a 0.2% increase. Excluding food and energy prices, the index was up 0.2% as expected.
The Commerce Department said housing starts rose 6.8% in May to a 914,000 annualized rate from a revised 856,000 in April. Applications for single-family homes jumped to 622,000, the highest level in more than five years.
Elsewhere, AUD/NZD fell 0.10% to 1.1860 as the kiwi is now found near its highest levels in three weeks against the Australian dollar.
NZD/JPY inched up 0.02% to 76.20 while EUR/NZD rose 0.21% to 1.6799.