New Zealand Dollar Strengthens Against Majors
Monday morning in Asia, the New Zealand dollar edged up against its major counterparts despite a slide in Asian stocks.
Tracking cues from Wall Street where stocks declined sharply on Friday on concerns over the fallout of proposed stricter guidelines for banks, most Asian stocks dropped today.
New Zealand’s benchmark NZX 50 index is currently trading at 3,181.86, down 8.57 points or 0.3% over its previous close.
Investors attention seen shifting to the Reserve Bank of NZ interest rate review on January 28. No change to the 2.5 percent cash rate is expected this month but analysts expect rates to start rising in the second quarter.
The NZ dollar climbed against the euro in early Asian trading on Monday. Currently, the euro-kiwi pair is worth 1.9755, compared to 1.9919 hit late New York Friday. On the upside, 1.972 is seen as the next target level for the NZ currency.
During early Asian deals on Monday, the New Zealand dollar strengthened against the currencies of U.S. and Japan. As of now, the kiwi is worth 0.7170 against the greenback and 64.66 against the yen, up from Friday’s close of 0.7108 and 63.89, respectively. If the kiwi advances further, it may target 0.723 against the greenback and 65.0 against the yen.
The U.S. dollar and yen- both dropped in early Asian session today, dragged down by reports that U.S. Federal Reserve Chairman Ben Bernanke’s confirmation is making progress after it appeared to hit a hurdle late last week. Bernanke’s improved confirmation prospects lifted appetite for riskier currencies.
The NZ dollar rose against the currency of Australia during early Asian deals on Monday. At present, the kiwi is trading at 1.266 against the aussie. The next upside target level for the NZ dollar is seen at 1.261. At Friday’s close, the aussie-kiwi pair was quoted at 1.2691.
Looking ahead, the German GfK consumer confidence report for February is the only major economic report due in the European session today.
The U.S. existing home sales report for December has been slated for release in the New York session.
