The New Zealand dollar weakened against most major currencies in the Asian session on Wednesday, as Reserve Bank Governor Graeme Wheeler said the bank is likely to cut interest rates again.
Speaking at the Institute of Finance Professional NZ annual conference in Auckland, RBNZ Governor Graeme Wheeler said that the central bank is likely to cut interest rates if the global economy slows significantly.
“Some further easing in the OCR seems likely but this will continue to depend on the emerging flow of economic data,” he added.
Wheeler’s comments increased speculation that RBNZ will lower cash rate again at next OCR review scheduled for October 29.
Tuesday, the NZ dollar fell against its major rivals due to a tumble in crude oil prices and weak Chinese import data. The NZ dollar fell 1.16 percent against the U.S. dollar, 1.40 percent against the yen, 0.98 percent against the euro and 0.14 percent against the Australian dollar.
In the Asian trading, the NZ dollar fell to 6-day lows of 0.6619 against the U.S. dollar and 79.26 against the yen, from yesterday’s closing quotes of 0.6638 and 79.49, respectively. If the kiwi extends its downtrend, it is likely to find support around 0.65 against the greenback and 77.00 against the yen.
Against the euro, the kiwi edged down to 1.7191 from yesterday’s closing value of 1.7115. On the downside, 1.74 is seen as the next support level for the kiwi.
Meanwhile, the kiwi rose to more than a 4-month high of 1.0818 against the Australian dollar, from yesterday’s closing value of 1.0903. The kiwi may test resistance near the 1.07 region.
Looking ahead, U.K.unemployment data and claimant count rate for September, Eurozone industrial production for August and Swiss ZEW economic expectation survey results for October are due to be released later in the day.
In the New York session, U.S. advance retail sales data and PPI, both for September and U.S. business inventories for August are set to be published.
Bank of England Chief Economist Andy Haldane is due to give a lecture at the Surrey University in GUILDFORD, England at 1:00 pm ET.
An hour later, U.S. Federal Reserve releases is set to release its Beige Book report.
The material has been provided by InstaForex Company – www.instaforex.com