Investing.com - The New Zealand dollar, colloquially referred to as the Kiwi, fell modestly during Tuesday’s Asian session, extending declines seen during Monday’s U.S. session.
In Asian trading Tuesday, NZD/USD fell 0.05% to 0.8347. The pair was likely to find support at 0.8298, the low of February 7 and resistance at 0.8368, the session high.
The Kiwi traded higher to start Tuesday’s Asian session following comments from Jens Weidmann, European Central Bank member and president of Germany's central bank, regarding the euro not being overvalued.
New Zealand’s dollar also moved higher on reports that Japanese Finance Minister Taro Aso said he will tell the group of G20 nations at an upcoming meeting that Japan is trying to curb deflation, not manipulating the yen lower. Aso recently came under fire for comments about the yen weakening too quickly against the dollar, but Japan itself has been accused of manipulating the yen lower.
Along with the U.S. dollar, the Kiwi has been gaining strength in against the euro and yen, creating potential profit erosion for New Zealand exporters and manufacturers. Any chatter that resembles more room for easing with the yen and U.S. and Australian dollars could be seen as damaging to the Kiwi’s prospects of falling.
Elsewhere, AUD/NZD fell 0.02% to 1.2279 after reports that traders are increasing bets that the Reserve Bank of Australia will pare rates later this year. Some traders are betting on nearly 50 more basis points being shaved from RBA’s key overnight rate, currently 3%. Even a 25 basis point reduction to 2.75% would take Australian interest rates to a record low.
While RBA is seen as being proactive with interest rates, traders believe the Reserve Bank of New Zealand is not likely to move to cut rates in the near-term.
Meanwhile, NZD/JPY fell 0.08% to 78.73 while EUR/NZD declined 0.07% to 1.6042.
In Asian trading Tuesday, NZD/USD fell 0.05% to 0.8347. The pair was likely to find support at 0.8298, the low of February 7 and resistance at 0.8368, the session high.
The Kiwi traded higher to start Tuesday’s Asian session following comments from Jens Weidmann, European Central Bank member and president of Germany's central bank, regarding the euro not being overvalued.
New Zealand’s dollar also moved higher on reports that Japanese Finance Minister Taro Aso said he will tell the group of G20 nations at an upcoming meeting that Japan is trying to curb deflation, not manipulating the yen lower. Aso recently came under fire for comments about the yen weakening too quickly against the dollar, but Japan itself has been accused of manipulating the yen lower.
Along with the U.S. dollar, the Kiwi has been gaining strength in against the euro and yen, creating potential profit erosion for New Zealand exporters and manufacturers. Any chatter that resembles more room for easing with the yen and U.S. and Australian dollars could be seen as damaging to the Kiwi’s prospects of falling.
Elsewhere, AUD/NZD fell 0.02% to 1.2279 after reports that traders are increasing bets that the Reserve Bank of Australia will pare rates later this year. Some traders are betting on nearly 50 more basis points being shaved from RBA’s key overnight rate, currently 3%. Even a 25 basis point reduction to 2.75% would take Australian interest rates to a record low.
While RBA is seen as being proactive with interest rates, traders believe the Reserve Bank of New Zealand is not likely to move to cut rates in the near-term.
Meanwhile, NZD/JPY fell 0.08% to 78.73 while EUR/NZD declined 0.07% to 1.6042.