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NZ Dollar Drops On Weak GDP Data

The New Zealand dollar weakened against the other major currencies in the Asian session on Thursday, as New Zealand's gross domestic product rose less-than-expected on quarter in the fourth quarter of 2016.

Data from Statistics New Zealand showed that New Zealand's gross domestic product was up 0.4 percent on quarter in the fourth quarter of 2016. That missed forecasts for a gain of 0.7 percent following the downwardly revised 0.8 percent increase in the previous three months.

Wednesday, the NZ dollar had risen 1.57 percent against the U.S. dollar, 0.43 percent against the yen, 0.61 percent against the euro and 0.15 percent against the aussie.

In the Asian trading, the NZ dollar fell to a 6-day low of 79.25 against the yen and a 2-day low of 1.5343 against the euro, from yesterday's closing quotes of 79.84 and 1.5233, respectively. If the kiwi extends its downtrend, it is likely to find support around 78.00 against the yen and 1.55 against the euro.

Against the U.S. dollar, the kiwi dropped to 0.6989 from yesterday's closing value of 0.7043. The kiwi may test support near the 0.68 region.

The kiwi slipped to 1.0987 against the Australian dollar, from yesterday's closing value of 1.0940. This may be compared to an early near 1-year low of 1.0996. The kiwi is likely to find support around the 1.10 area.

Looking ahead, at 4:30 am ET, the Swiss National Bank's interest rate announcement is due. The central bank is expected to maintain the LIBOR rate at -0.75 percent.

Eurozone CPI data for February is due to be released at 6:00 am ET.

At 8:00 am ET, the Bank of England will announce its interest rate decision. Economists expect the bank to retain interest rates unchanged at 0.25 percent and asset purchase target at GBP 435 billion.

In the New York session, U.S. housing starts and building permits for February, U.S. weekly jobless claims for the week ended March 11, and U.S. Federal Reserve Bank of Philadelphia's manufacturing index for March are slated for release.

by RTTNews Staff Writer

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