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NZ Dollar Falls Amid RBNZ Rate Cut Speculations
(RTTNews) - The New Zealand dollar weakened against other major currencies in the Asian session on Friday, as traders speculate additional easing by the Reserve Bank of New Zealand (RBNZ).
Markets are pricing in a rate decrease in May and expect the Official Cash Rate to drop to 2.75 percent by year's end because inflation is still within the RBNZ's target range.
Growing fears about the economic effects of U.S. tariffs and trade tensions, also led to the downturn of traders' sentiment.
However, because of Good Friday, trading volumes are probably going to stay low.
Given New Zealand's tight export relations with China, its biggest trading partner, investors are closely monitoring changes in U.S. trade policy.
In the Asian trading today, the NZ dollar fell to 1.9191 against the euro and 84.35 against the yen, from early highs of 1.9040 and 85.03, respectively. If the kiwi extends its downtrend, it is likely to find support around 1.92 against the euro and 82.00 against the yen.
Against the U.S. and the Australia dollars, the kiwi edged down to 0.5927 and 1.0760 from early highs of 0.5974 and 1.0693, respectively. On the downside, 0.57 against the greenback and 1.08 against the aussie are seen as the next support levels for the kiwi.
Looking ahead, the stock markets are closed for Good Friday; for the holiday-shortened week.
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