Kiwi Falls As New Zealand Economic Growth Slows

The New Zealand dollar weakened against the other major currencies in the Asian session on Thursday, after data showed that the nations’ gross domestic product grew less than expected on quarter in the first three months of 2017.

Data from Statistics New Zealand showed that New Zealand’s gross domestic product expanded 0.5 percent on quarter in the first three months of 2017. That was shy of expectations for a gain of 0.7 percent but was up from the 0.4 percent increase in the three months prior.

Expenditure on gross domestic product gained 0.2 percent in the first quarter.

On a yearly basis, GDP climbed 2.5 percent, again missing forecasts of 2.7 percent, which would have been unchanged.

Meanwhile, crude oil delivery for July is currently down by 0.02 percent or $44.71 per barrel. Crude oil futures dropped on Wednesday to their lowest since November after OPEC warned the global supply glut may worsen.

Wednesday, the NZ dollar had risen 1.27 percent against the U.S. dollar, 0.55 percent against the yen, 0.61 percent against the euro and 0.08 percent against the aussie.

In the Asian trading, the NZ dollar fell to a 3-day low of 78.97 against the yen and more than a 2-week low of 1.0551 against the Australian dollar, from yesterday’s closing quotes of 79.65 and 1.0437, respectively. If the kiwi extends its downtrend, it is likely to find support around 77.00 against the yen and 1.07 against the aussie.

Against the U.S. dollar and the euro, the kiwi edged down to 0.7208 and 1.5564 from yesterday’s closing quotes of 0.7270 and 1.5428, respectively. The kiwi may test support near 0.70 against the greenback and 1.59 against the euro.

Looking ahead, Swiss PPI for May, U.K. retail sales data for May and Eurozone trade balance for April are due to be released later in the day.

At 3:30 am ET, the Swiss National Bank’s interest rate announcement is due. The central bank is expected to maintain the LIBOR rate at -1.25 percent.

At 3:40 am ET, Reserve Bank of Australia Assistant…

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