(RTTNews) - The New Zealand dollar showed mixed trading against other major currencies during Asian deals on Wednesday as investors look forward to the Reserve Bank of New Zealand's interest rate decision tomorrow.
The kiwi declined against the yen and the greenback, but it showed choppy trading against the euro. Against the Aussie, the kiwi plunged in early deals on higher-than-expected Australia's CPI report, but has come off slightly in late trading.
The Reserve Bank of New Zealand, which will announce its interest rate decision on Thursday is expected to keep the rate unchanged at 2.50%. Analysts expect there will be not be any change in the interest rate till mid-2010 as indicated by the RBNZ Governor Alan Bollard on December 10, 2009.
The New Zealand stocks declined today and the benchmark NZX50 index closed down 15.49 points at 3193.57.
At 12:45 am ET Wednesday, the NZ dollar touched 62.98 against the yen, down from yesterday's close of 63.54. As of now, the kiwi-yen pair is worth 63.10.
The yen surged up against its major counterparts today on persistent worries about the prospects of a global economic recovery.
The New Zealand dollar declined against its U.S. counterpart. At 1:20 am ET, the kiwi fell to 0.7068 against the U.S. currency. The present quote for the kiwi-greenback pair is 0.7072, compared to Tuesday's New York session close of 0.7083.
The New Zealand dollar traded in a tight range against the euro. As of now, the euro-kiwi pair is trading at 1.9909, compared to yesterday's close of 1.9891.
Against the Aussie, the NZ dollar plunged to a new multi-week low of 1.2777 in early Asian deals on Wednesday as the Aussie jumped on higher-than-expected Australia's CPI report. But the kiwi recovered slightly thereafter and moved sideways. The aussie-kiwi pair that closed yesterday's trading at 1.270 is now worth 1.2758.
The French consumer confidence for January and the Italian trade balance for December are expected in the upcoming European session.
However, in the North American session, the U.S. new home sales report for the month of December is slated for release at 10:00 am ET.
At 2:15 pm ET, the Federal Open Market Committee is scheduled to announce its decision on interest rates.
