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NZ Dollar Climbs As RBNZ Leaves Cash Rate Unchanged

The New Zealand dollar outperformed against other major currencies in early Asian trading on Thursday as the country's central bank decided to retain its benchmark Official Cash Rate unchanged at 2.5 percent, as expected.

The central bank has been holding the rate at the current record low level since April last year.

The bank also noted that economic growth may accelerate over the next two years.

"Economic growth has slowed in recent months and has been accompanied by low inflation and rising unemployment," RBNZ Governor Graeme Wheeler said in a statement after the monetary policy meeting. "Over the next two years, growth is expected to accelerate to between 2.5 and 3 percent per annum."

The kiwi advanced to near a 1-month high of 0.8309 against the greenback and the next resistance level for the kiwi-greenback pair is likely seen at 0.835. The pair closed Wednesday's trading at 0.8288.

Against the yen, the kiwi touched more than an 8-month high of 68.54, up from Wednesday's close of 68.37. On the upside, the kiwi may seek 69.00 as next target level.

The kiwi that ended Wednesday's deals at 1.5779 against the euro gained 0.4 percent and reached a 1-week high of 1.5717. If the kiwi extends rise, it may break 1.565 level.

Against the aussie, the kiwi spiked up to a fresh 4-week high of 1.2598 and held steady. The kiwi is likely to break next upside target level at 1.255. The pair finished yesterday's deals at 1.2624.

The Australian Bureau of Statistics said that the economy added 13,900 jobs in November - shattering expectations for a flat reading after adding a downwardly revised 10,200 in the previous month

Australia posted a seasonally adjusted unemployment rate of 5.2 percent in November. That blew away forecasts for a rate of 5.5 percent after showing 5.4 percent in October.

Swiss jobless data and CPI for November, U.K. trade data for October, Eurozone preliminary GDP data for the third quarter and German factory orders for October are due in the European session.

Bank of England's interest rate decision is due at 7:00 am ET. Analysts expect the central bank to retain interest rate at 0.50 percent.

European Central Bank rate decision is expected at 7:45 am ET. The central bank is widely forecast to hold interest rates at 0.75 percent.

The U.S. weekly jobless claims for the week ended November 1, Canada building permits for October and Ivey PMI for November are slated for release in the New York session.

by RTTNews Staff Writer

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