NZ Dollar Rebounds After RBNZ Rate Decision

(RTTNews) - The New Zealand dollar rebounded from recent lows against other major currencies in the Asian session on Wednesday, after the New Zealand central bank left rates unchanged, as economists expected.

At the Reserve Bank of New Zealand monetary policy committee meeting held today, the RBNZ Governor Adrian Orr left its official cash rate unchanged at 5.50 percent, as economists anticipated.

Market now bet a chance of a 25-basis point rate hike in early 2024.

Meanwhile, the NZ dollar fell against other major currencies as Asian markets traded lower on persisting worries about the worsening economic conditions in China and signs the Federal Reserve may keep interest rates higher for longer to tame inflation.

In the Asian trading today, the NZ dollar rose to a 5-day high of 1.0806 against the Australian dollar, from a recent low of 1.0849. The kiwi may test resistance near the 1.07 region.

Against the U.S. dollar, the yen and the euro, the kiwi edged up to 0.5975, 86.88 and 1.8276 from a recent 9-month low of 0.5931, a 2-day low of 86.38 and nearly a 3-1/2-year low of 1.8377, respectively. If the kiwi extends its uptrend, it may find resistance around 0.62 against the greenback, 89.00 against the yen and 1.80 against the euro.

Looking ahead, Eurostat is slated to publish euro area GDP for the second quarter and industrial production data for June at 5:00 am ET.

In the New York session, U.S. weekly MBA mortgage approvals data, U.S. and Canada housing starts data for July, U.S. preliminary building permits data for July, U.S, industrial and manufacturing productions data for July and U.S. EIA crude oil data slated for release.

At 2:00 pm ET, investors await the release of FOMC minutes and comments from Fed officials for fresh impetus.