The New Zealand dollar continued to be weak against the other major currencies in the Asian session on Wednesday after data showed that the unemployment rate in New Zealand rose in the third quarter of 2015, in line with expectations.
Data from Statistics New Zealand showed that the unemployment rate in New Zealand came in at 6.0 percent in the third quarter of 2015, in line with expectations and up from 5.9 percent in the previous three months. The employment change was up 1.5 percent on year, missing forecasts for 2.5 percent and slowing from 3.0 percent in Q2.
At the GDT auction overnight, the New Zealand GDT Price Index dropped 7.4 percent to an average of US$2569 per metric tonne. This marked the indicator’s worst showing in six months. Higher production from Europe and subdued demand had kept a lid on dairy prices.
Tuesday, the NZ dollar fell 1.09 percent against the U.S. dollar, 0.88 percent against the yen, 0.57 percent against the euro and 1.75 percent against the Australian dollar.
In the Asian trading, the NZ dollar fell to a 3-week low of 1.0843 against the Australian dollar and a 6-day low of 80.39 against the yen, from yesterday’s closing quotes of 1.0779 and 80.66, respectively. If the kiwi extends its downtrend, it is likely to find support around 1.10 against the aussie and 79.00 against the yen.
Against the euro and the U.S. dollar, the kiwi dropped to 1-week lows of 1.6508 and 0.6633 from yesterday’s closing quotes of 1.6451 and 0.6663, respectively. The kiwi may test support near 1.72 against the euro and 0.65 against the greenback.
Looking ahead, PMI reports from major European economies for October and Eurozone PPI for September, are due to be released later in the day.
At 3:00 am ET, European Central Bank President Mario Draghi will deliver opening remarks at the ECB Forum on Banking Supervision in Frankfurt.
Subsequently, at 5:30 am ET, Federal Reserve Governor Lael Brainard will participate in a panel discussion at the European Central Bank in Frankfurt.
In the New York session, U.S. private sector jobs data for October, trade data for September, the ISM U.S. non-manufacturing PMI for October, U.S. weekly Crude oil inventory data and Canada trade data for September are slated for release.
At 8:00 am ET, Federal Reserve Bank of Philadelphia President Patrick Harker is expected to speak on “Why Pay for Success: The Need for New Sources of Social Innovation Capital” before the “Capital for Communities: Pay for Success Financing” event in Philadelphia.
At 10:00 am ET, Federal Reserve Chair Janet Yellen will testify on bank regulation before the House Financial Services Committee in Washington DC.
At 2:30 pm ET, Federal Reserve Bank of New York President William Dudley is expected to speak about the economy in New York.
The material has been provided by InstaForex Company – www.instaforex.com