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NZ Dollar Falls After PBOC Slashed Its 1-year Benchmark Lending Rate
(RTTNews) - The New Zealand dollar weakened against other major currencies in the Asian session on Monday, after the People's Bank of China slashed its one-year loan prime rate by 10 basis points to a record low.
Data from the People's Bank of China showed that the one-year benchmark lending rate was cut by 10 basis points to 3.45 percent.
Meanwhile, the five-year rate was left unchanged at 4.20 percent.
In economic news, data from Statistics New Zealand showed that New Zealand posted a merchandise trade deficit of NZ$1.107 billion in July. That's down from the downwardly revised NZ$111 million in June.
Exports were worth NZ$5.45 billion, down from the downwardly revised NZ$618 billion in the previous month.
Imports were at NZ$6.56 billion, up from the downwardly revised NZ$6.29 billion a month earlier.
In the Asian trading today, the NZ dollar fell to more than a 3-week low of 85.79 against the yen and a 4-day low of 1.8403 against the euro, from Friday's closing quotes of 86.07 and 1.8347, respectively. If the kiwi extends its downtrend, it is likely to find support around 84.00 against the yen and 1.85 against the euro.
Against the U.S. and the Australian dollars, the kiwi dropped to 4-day lows of 0.5907 and 1.0835 from last week's closing quotes of 0.5921 and 1.0810, respectively. On the downside, 0.58 against the greenback and 1.10 against the aussie are seen as the next support levels for the kiwi.
Looking ahead, German PPI data for July is due to be released at 2:00 am ET.
In the New York session, Canada new housing price index for July is slated to publish.
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