Investing.com - The Kiwi slid against the U.S. dollar during Monday’s Asian session, despite a public holiday in Auckland, on news that New Zealand policymakers are set to look into the currency’s recent strength at the behest of exporters.
In Asian trading Monday, NZD/USD fell 0.26% to 0.8362. The pair is likely to find support at 0.8353, Friday’s low and resistance at 0.8445, Thursday’s high.
NZD/USD gained additional steam last week amid positive economic data reports from China and the U.S. The pair rallied after HSBC said that its China Flash Purchasing Managers Index rose to a 24-month high of 51.9 in December from a final reading of 51.5 in November. China is New Zealand’s second-largest trading partner.
However, NZD/USD could be in for some near-term weakness on news the Labor, Green, New Zealand First and Mana parties are expected to holding hearings and conduct inquiries into the Kiwi’s strength, which is plaguing the country’s exporters.
Press reports out of New Zealand cite those political parties as saying the country’s manufacturing sector has cut 40,000 jobs because of the soaring dollar. Export-dependent economies suffer when their currencies rise too much because a stronger currency crimps profits.
Some politicians in New Zealand have said they would like to see NZD/USD drop to the 75 area, a price level that has not been seen since the second quarter of 2012.
One manufacturing executive in New Zealand went so far as to say the strong Kiwi is the single biggest threat to his business. The Reserve Bank of New Zealand has previously focused more on inflation, but it appears if manufacturing executives have their way, the central bank will move to weak the New Zealand dollar.
Elsewhere, EUR/NZD climbed 0.24% to 1.6093 while NZD/JPY fell 0.04% to 76.16.
In Asian trading Monday, NZD/USD fell 0.26% to 0.8362. The pair is likely to find support at 0.8353, Friday’s low and resistance at 0.8445, Thursday’s high.
NZD/USD gained additional steam last week amid positive economic data reports from China and the U.S. The pair rallied after HSBC said that its China Flash Purchasing Managers Index rose to a 24-month high of 51.9 in December from a final reading of 51.5 in November. China is New Zealand’s second-largest trading partner.
However, NZD/USD could be in for some near-term weakness on news the Labor, Green, New Zealand First and Mana parties are expected to holding hearings and conduct inquiries into the Kiwi’s strength, which is plaguing the country’s exporters.
Press reports out of New Zealand cite those political parties as saying the country’s manufacturing sector has cut 40,000 jobs because of the soaring dollar. Export-dependent economies suffer when their currencies rise too much because a stronger currency crimps profits.
Some politicians in New Zealand have said they would like to see NZD/USD drop to the 75 area, a price level that has not been seen since the second quarter of 2012.
One manufacturing executive in New Zealand went so far as to say the strong Kiwi is the single biggest threat to his business. The Reserve Bank of New Zealand has previously focused more on inflation, but it appears if manufacturing executives have their way, the central bank will move to weak the New Zealand dollar.
Elsewhere, EUR/NZD climbed 0.24% to 1.6093 while NZD/JPY fell 0.04% to 76.16.