Investing.com - The New Zealand dollar traded lower against its U.S. counterpart during Wednesday’s Asian as traders awaited commentary from the Reserve Bank of New Zealand later in the session.
In Asian trading Wednesday, NZD/USD slid 0.95% to 0.8379. The pair violated support at 0.8482, the low of May 1 and resistance at 0.8556, Monday's high.
While most traders are not expecting RBNZ to follow the Reserve Bank of Australia by lowering interest rates, the former’s commentary will nonetheless be important with traders likely focused on New Zealand's six-monthly financial stability report.
That may give some clues regarding a real estate bubble, something the central bank is searching desperately to avoid. New Zealand’s bench market interest currently resides at 2.5% and RBNZ has previously said it plans to hold rates steady with an eye towards a rate hike in the early part of 2014.
In additional to having to contend with the hot housing market, RBNZ has to deal with the strong kiwi, which has been hampering New Zealand’s exporters. The central bank has previously eschewed intervention in the foreign currency market as well as Federal Reserve/Bank of Japan-style quantitative easing as a means of depressing the kiwi.
Some traders are speculating NZD/USD could fall to 0.8350 as soon as this month.
In addition to the RBNZ news, traders will also focus on Chinese trade data due out later Wednesday. China recently topped Australia to become New Zealand’s largest trading partner.
Elsewhere, AUD/NZD jumped 0.64% to 1.2121 while NZD/JPY dropped 0.68% to 83.17.
In Asian trading Wednesday, NZD/USD slid 0.95% to 0.8379. The pair violated support at 0.8482, the low of May 1 and resistance at 0.8556, Monday's high.
While most traders are not expecting RBNZ to follow the Reserve Bank of Australia by lowering interest rates, the former’s commentary will nonetheless be important with traders likely focused on New Zealand's six-monthly financial stability report.
That may give some clues regarding a real estate bubble, something the central bank is searching desperately to avoid. New Zealand’s bench market interest currently resides at 2.5% and RBNZ has previously said it plans to hold rates steady with an eye towards a rate hike in the early part of 2014.
In additional to having to contend with the hot housing market, RBNZ has to deal with the strong kiwi, which has been hampering New Zealand’s exporters. The central bank has previously eschewed intervention in the foreign currency market as well as Federal Reserve/Bank of Japan-style quantitative easing as a means of depressing the kiwi.
Some traders are speculating NZD/USD could fall to 0.8350 as soon as this month.
In addition to the RBNZ news, traders will also focus on Chinese trade data due out later Wednesday. China recently topped Australia to become New Zealand’s largest trading partner.
Elsewhere, AUD/NZD jumped 0.64% to 1.2121 while NZD/JPY dropped 0.68% to 83.17.