The New Zealand dollar pulled back from early highs versus other major currencies in the Asian session on Wednesday, as Asian stock markets traded lower. This was because of investors position on embracing a careful position ahead of the U.S. Federal Reserve’s monetary policy decision due later in the day.
While the Fed is extensively expected to leave interest rates the same, traders are likely to pay very close attention to the accompanying declaration for clues about the outlook for policy, including information of how the central bank plans to begin shrinking its $4.5 trillion balance sheet.
Traders likewise await the current New Zealand political opinion poll ahead of Saturday’s general election and the Bank of Japan’s two-day meeting that start today.
In other economic news, data from Stats New Zealand revealed that New Zealand posted a seasonally changed bank account deficit of NZ$ 1.598 billion in the 2nd quarter of 2017. That follows the NZ$ 2.2.85 billion shortage in the 3 months prior.
On an annual basis, New Zealand’s current account deficit was NZ$ 7.5 billion.
In the Asian trading, the NZ dollar fell to 81.40 versus the yen and 1.0978 versus the Australian dollar, from an early more than a 6-week high of 81.86 and a 4-week high of 1.0921, respectively. If the kiwi extends its sag, it is likely to find assistance around 79.00 against the yen and 1.11 against the aussie.
Versus the United States dollar and the euro, the kiwi dropped to 0.7303 and 1.6439 from an early 2-day highs of 0.7342 and 1.6349, respectively. The kiwi might check support near 0.72 versus the greenback and 1.66 versus the euro.
Looking ahead, U.K. retail sales data for August is due to be launched at 4:30 am ET.
In the New york city session, U.S. existing house sales data for August and petroleum stocks data are slated for release.
At 2:00 pm ET, the Federal Reserve will reveal its decision on monetary policy. The Fed is expected to hold rates at 1.25 percent.
The material has been supplied by InstaForex Business – www.instaforex.com