New Zealand Dollar Falls To Multi-day Lows Against Most Majors
In early European trading on Wednesday, the New Zealand dollar plummeted to multi-day lows against the currencies of Australia, Europe and Japan as European stocks declined on concern over the sluggish global economic recovery. The kiwi also showed modest weakness against the greenback.
At present, Germany’s DAX is falling by 0.5%, France’s CAC 40 index is dropping by 0.8% and U.K.’s FTSE 10 index is losing by more than 1%.
Some Asian stocks also traded lower today as concerns about sustaining global economic recovery led the decline.
Japan’s Nikkei 225 index fell 2.1%, New Zealand’s NZX 50 index lost 0.4% and South Korea’s Kospi declined 0.5%. Australia’s S&P 200 index and the All Ordinaries index slipped 0.6% each.
However, stock markets in China, Hong Kong and Taiwan ended higher.
The New Zealand dollar slipped against the Aussie during early European session on Wednesday. As of now, the kiwi is trading at a 2-day low of 1.2498 against the aussie, compared to 1.2446 hit late New York Tuesday. On the downside, 1.252 is seen as the next target level for the New Zealand currency.
The Aussie did not show any major reaction against the New Zealand dollar in early Asian deals today amid the releases of Australia’s encouraging trade balance and house price reports.
During early European deals on Wednesday, the New Zealand dollar weakened against the currencies of Japan and Europe. At present, the kiwi is trading at a 5-day low of 62.5 against the yen and 1.808 against the euro. The next downside target level for the kiwi is seen at 62.1 against the yen and 1.812 against the euro. The euro-kiwi and the kiwi-yen pairs were worth 1.8024 and 63.03, respectively at yesterday’s close.
Eurozone retail sales volume remained flat in June from the previous month, data from Eurostat showed today. The latest figure matched economists’ expectations. Year-on-year, retail sales growth eased to 0.4% from 0.6% in May. Consensus forecast was for 0.1% increase.
The New Zealand dollar dropped against the US currency in early Asian deals on Wednesday. Currently, the kiwi-greenback pair is worth 0.7305, down from yesterday’s close of 0.7343. If the NZ dollar slides further, it may likely target the 0.720 level.
The U.S. ADP employment report and the ISM non-manufacturing index – both for July have been slated for release in the upcoming North American session.
