The New Zealand dollar continued to be weak against the other major currencies in the Asian session on Tuesday, as traders bet milk product prices will fall at the GlobalDairyTrade auction, due later on the day.
The traders are speculating that the fall in dairy products price would add pressure on the Reserve Bank of New Zealand to cut its interest rates when it reviews policy next month.
Investor sentiment fell in the wake of deadly terrorist attacks in Paris over the weekend.
In economic news, the Reserve Bank of New Zealand’s survey of expectations showed that its two-year inflation forecasts for the fourth quarter remained below the central bank’s 2 percent target. Inflation expectations for the next 24 months dropped to 1.85 percent from 1.94 percent in the September survey.
Monday, the NZ dollar fell 0.68 percent against the U.S. dollar, 0.14 percent against the yen, 0.89 percent against the euro and 0.15 percent against the Australian dollar.
In the Asian trading, the NZ dollar fell to nearly a 1-1/2-month low of 0.6456 against the U.S. dollar and a 5-week low of 1.0979 against the Australian dollar, from yesterday’s closing quotes of 0.6489 and 1.0921, respectively. If the kiwi extends its downtrend, it is likely to find support around 0.63 against the greenback and 1.11 against the aussie.
Against the euro and the yen, the kiwi edged down to 1.6515 and 79.65 from yesterday’s closing quotes of 1.6448 and 79.95, respectively. The kiwi may test support near 1.70 against the euro and 78.00 against the yen.
Looking ahead, U.K. consumer price and producer price indexes, both for October and house price index for September, German ZEW economic sentiment index for November are due to be released later in the day.
At 3:3: am ET, European Central Bank board member Sabine Lautenschlager is expected to speak at a conference on banking supervision, resolution and risk management as part of the Euro Finance Week in Frankfurt.
In the New York session, U.S. CPI data and industrial production, both for October and U.S. house price index for November are slated for release.
At 1:15 pm ET, Federal Reserve Board Governor Jerome Powell is expected to speak before the Clearing House Annual Conference in New York.
The material has been provided by InstaForex Company – www.instaforex.com