The New Zealand dollar fell to a 1-week low against the US dollar and a 5-day low against the euro in early Asian deals on Wednesday despite a gain in regional stocks.
At 10:32 pm ET, New Zealand's benchmark NZX 50 index rose 9.10 points or 0.3% at 3,126.21.
The kiwi also fell against the yen, but climbed to a new multi-week high against the Aussie due to across the board weakening of the latter.
Investors will be keeping close tab over the U.S. Federal Reserve announcement regarding its near-term direction of monetary policy at 2:15 pm ET today following the end of its 2-day monetary policy committee meeting. Fed is likely to keep rates unchanged near zero, but attention will be on the tone of statement.
The New Zealand dollar, which closed yesterday's trading at 0.7217 against the US currency fell to a 1-week low of 0.7186 in early Asian deals on Wednesday. The next downside target level for the kiwi-greenback pair is seen at 0.705. Currently, the pair is trading at 0.7193.
From U.S., the consumer price index for October is scheduled to be released at 8:30 am ET. The consensus estimates call for a 0.3% increase in the headline consumer price index, while the core consumer price index that excludes food and energy is expected to have remained unchanged.
A report on housing starts, is also slated to be released at 8:30 am ET. Economists estimate housing starts of 578,000 for November.
During early Asian deals on Wednesday, the New Zealand dollar slipped against the Japanese yen. At 10:10 pm ET, the kiwi-yen pair touched 64.36, down from yesterday's close of 64.69. If the NZ currency weakens further, it may target the 63.8 level.
Against its European counterpart, the kiwi edged down to 2.0286 by about 10:15 pm ET, Tuesday. This set a 5-day low for the kiwi. If the New Zealand currency moved down further, 2.05 is seen as the next downside target level. The euro-kiwi pair closed Tuesday's New York deals at 2.0157.
On the other hand, the kiwi showed strength against the currency of Australia during today's early deals due to across the board weakening of the latter. The NZ dollar rose to a new multi-week high of 1.2520 against the Aussie by 8:10 pm ET, compared to 1.2567 hit late Tuesday in New York. If the kiwi moves up further, 1.245 is seen as the next upside target level. As of now, the aussie-kiwi pair is worth 1.2533.
The aussie fell today as Australia's third quarter GDP grew less than expected in the third quarter of this year.
Adding to aussie's slide, the Reserve Bank of Australia's Deputy Governor Ric Battellino told a conference in Sydney today that interest rates being paid by borrowers are now "above their previous cyclical lows," making it "reasonable to conclude that the overall stance of monetary policy is now back in the normal range."
