NZ dollar recovers early losses against most majors
The New Zealand dollar recovered the losses it incurred in early Thursday's Asian trading against the US dollar, the European single currency and the Japanese yen. Meanwhile, the kiwi remained down against the Australian dollar.
Today, the focus of the currency market will be on interest rates decisions by the European Central Bank. Analysts expect the ECB to keep rates steady at 4.25%.
The ECB is expected to hold the key-lending rate, which is the minimum bid rate on the main refinancing operations, at 4.25%. The central bank had maintained the rate at a six-year high of 4% since June last year, before hiking it in July.
The New Zealand currency declined to 0.6804 against the US dollar before gaining ground at about 1:35 am ET Thursday. The kiwi-dollar pair is currently trading at 0.6877, compared to 0.6853 hit late New York Wednesday.
Against the European single currency, the NZ dollar touched a low of 2.1291 at about 11:55 pm ET Wednesday. Thereafter, the kiwi gained ground and is currently quoted at 2.1150 against the euro. The euro-kiwi pair closed yesterday's North American session at 2.1159.
The New Zealand currency edged down against the Australian dollar during early deals on Thursday. At about 11:45 pm ET, the kiwi slipped to 1.2243 against the Aussie, compared to Wednesday's close of 1.2209. The Aussie-kiwi pair is now worth 1.2211.
The Australian Bureau of Statistics in its report released earlier today said that the nation posted a seasonally adjusted trade deficit of A$717 million in July, contrasting sharply with analyst expectations for a surplus of A$150. The country saw a surplus of A$351 million in June, and it posted a deficit of A$964 million in July 2007.
Imports were up 4 percent in July compared to the previous month, standing at A$23.6 billion. That's up from A$22.7 billion a month earlier and from A$19.29 billion a year earlier. Exports eased 1 percent on month to A$22.88 billion, down from A$23.05 billion in June but up from A$18.33 billion in July 2007.
The New Zealand dollar that hit a low of 73.57 against the Japanese yen at about 1:35 am ET Thursday strengthened thereafter. The kiwi-yen pair that closed Wednesday's New York deals at 74.23 is now worth 74.55.
At 6.00am ET, the Federal Ministry of Economics and Technology is scheduled to publish the latest report on German factory orders, which is predicted to rise 0.3% month-on-month in July, after falling for the seventh consecutive month in June.
The ADP employment change, second quarter non-farm productivity, August ISM non-manufacturing composite, initial jobless and continuing claims are the major economic releases expected from US in the New York session. Copyright(c) 2008 RealTimeTraders.com, Inc. All Rights Reserved
