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NZ Dollar Trades Lower Amid Rising Risk Aversion

The New Zealand dollar traded lower against its most major counterparts in the Asian session on Friday amid rising risk aversion, as the U.S-China plan to roll back tariffs on each others' goods met internal opposition from the White House and outside advisers.

There is a divide within the administration over whether rolling back tariffs will give away U.S. leverage in the negotiations, the report quoted current and former administration officials as saying.

But declines were capped somewhat after data showed China's exports and imports contracted less than expected in October.

Exports fell 0.9 percent year-on-year in dollar terms, falling for the third straight month. Economists had expected a 3.9 percent fall following September's 3.2 percent contraction.

Imports declined 6.4 percent from a year earlier, slower than the forecast of 7.8 percent fall. This was the sixth consecutive decrease reflecting subdued demand.

The kiwi declined to 69.45 against the yen, from an early 3-day high of 69.81, and held steady thereafter. The kiwi is seen finding support around the 67.00 mark.

Preliminary data from the Cabinet Office showed that Japan's leading index rose in September after falling in the previous month.

The leading index, which measures the future economic activity, rose to 92.2 in September from 91.9 in August. That was in line with economists' expectations.

The kiwi fell to 1.7375 against the euro, from an early 3-day high of 1.7313, and held steady thereafter. The next likely support for the kiwi is seen around the 1.77 level.

The NZ currency reversed from an early high of 0.6382 against the greenback, falling to 0.6358. The kiwi may challenge support around the 0.62 level.

In contrast, the kiwi held steady against the aussie, after recovering to 1.0805 from a low of 1.0835 seen at 5:30 pm ET. The kiwi is likely to face resistance around the 1.06 region, if it gains again.

In its quarterly statement on monetary policy, Australia's central bank signaled further easing as wage growth is not expected to pick up and inflation set to remain below the target band.

The Reserve Bank of Australia said wage growth is no longer expected to pick up but the labor market and inflation forecasts were little changed from August.

Looking ahead, at 8:15 am ET, Canada housing starts for October are due at 8:15 am ET.

In the New York session, Canada jobs data for October and building permits for September, as well as University of Michigan's consumer sentiment index for November and U.S. wholesale sales for September will be released.

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