New Zealand Dollar Weakens As Most Asian Stocks Slide
Tuesday morning in Asia, the New Zealand dollar declined against its major counterparts as a fall in most Asian stocks reduced demand for higher-yielding currencies. The kiwi dropped to a 4-day low against the greenback and the yen, while it eased from a 6-day high against the euro and the aussie.
New Zealand’s NZX 50 index fell 0.4%, Japan’s Nikkei 225 index declined 0.3%, China’s Shangai composite index slipped 0.6%, South Korea’s Kospi dropped 0.2%.
However, the stock markets in Australia, Hong Kong, Taiwan, Malaysia and Singapore are trading flat.
The New Zealand dollar fell against the currencies of US and Japan in early Asian deals on Tuesday. Currently, the kiwi is trading at a 4-day low of 0.6979 against the greenback and 62.84 against the yen, compared to Monday’s closing values of 0.7011 and 63.34, respectively. The next downside target level for the NZ dollar is seen at 0.686 against the greenback and 60.9 against the yen.
The New Zealand dollar slipped against the Aussie after reaching a 6-day high of 1.2978 at 5:05 pm ET Monday. As of now, the kiwi is worth 1.3035 against the aussie with 1.314 seen as the next downside target level. The aussie-kiwi pair closed yesterday’s New York session at 1.2983.
The Aussie strengthened as a survey report showed that business confidence and conditions in Australia rose in February to a four-month high, but growth remained below the highs seen in late 2009. The National Australia Bank business confidence index gained four points to plus-19 points in February.
Meanwhile, another survey report by ANZ showed that the number of job ads placed in newspapers and on the internet surged by almost 20% in February,
The New Zealand dollar that climbed to a 6-day high of 1.9434 against the euro in late New York trading on Monday lost ground in early Asian deals on Tuesday. At present, the kiwi is worth 1.9520 against the euro. If the NZ dollar weakens further, it may likely target the 1.963 level. The euro-kiwi pair was worth 1.9452 at yesterday’s close.
The French trade balance report for January has been slated for release in the European session today.
