Market Commentary and Intraday News

New Zealand Dollar Trades Higher Amid GDP Data

243 days ago

(RTTNews) - In the early Asian session on Thursday, the New Zealand dollar reversed its direction and traded higher against other major currencies following the release of nation's better-than-expected gross domestic product report for the second quarter.

Statistics NZ reported that New Zealand's economy expanded 0.6 percent in the second quarter of 2012 compared to the previous three months. That beat forecasts for an increase of 0.4 percent following the downwardly revised 1.0 percent expansion in the first quarter (originally 1.1 percent).

On a yearly basis, GDP jumped 2.6 percent, also beating estimates for an increase of 2.4 percent, which would have been unchanged from the previous three months.

The kiwi advanced to 0.8305 against the U.S. dollar, its strongest level since September 17. This may be compared to an early 2-day low of 0.8254. If the kiwi rises further, it may target 0.835 level. The kiwi-greenback pair closed yesterday's deals at 0.8270.

Against the Australian currency, the kiwi advanced to 1.2612, reversing from a 3-day low of 1.2703. The next resistance level for the kiwi is seen at 1.26. The pair closed Wednesday's deals at 1.2682.

The kiwi that rose to 1.5728 against the euro from a 2-day low of 1.5819 held steady thereafter. The next upside target level for the kiwi is seen at 1.565. At Wednesday's close, the pair traded at 1.5789.

The kiwi that bounced back from a 6-day low of 64.70 against the yen edged up to 65.12 before moving sideways thereafter. The kiwi ended yesterday's deals at 64.83 versus the yen.

Japan saw a merchandise trade deficit of 754.127 billion yen in August, the Ministry of Finance said today.

That beat forecasts for a shortfall of 829.3 billion yen following the downwardly revised deficit of 518.9 billion yen in July (originally 517.382 billion yen).

Looking ahead, Bank of Japan's monthly economic report is due at 1:00 am ET.

German producer prices, U.K. retail sales and Swiss trade data -all for August, PMI's from major European economies and Switzerland's second quarter industrial production are expected in the New York morning session.

From the U.S., weekly jobless claims for the week ended September 15 and leading indicators for August are expected in the American morning session.

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