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New Zealand Dollar Weakens Against Majors

Tuesday morning in Asia, the New Zealand dollar edged down against its major counterparts as a slide in Asian stocks reduced demand for higher-yielding currencies.

Most Asian stocks opened lower today with investors going in for some profit taking after the previous session's sharp gains. A flat close on Wall Street too is contributing a bit to the decline.

Japan's Nikkei 225 index fell 0.4%, Hong Kong's Hang Seng slipped 1.45%, China's Shangai composite index dropped 2%, New Zealand's NZX 50 index lost 0.3%, South Korea's Kospi declined 0.5%, Taiwan's main index plunged 0.3%.

Meanwhile, the Australian stocks are trading flat today.

The New Zealand dollar slipped against the currencies of US and Japan in early Asian deals on Tuesday. As of now, the kiwi is worth 67.52 against the yen and 0.7199 against the greenback, down from yesterday's close of 67.99 and 0.7236, respectively. If the kiwi weakens further, it may likely target 0.708 against the US currency and 65.4 against the yen.

During early Asian deals on Tuesday, the New Zealand dollar fell against the Aussie and hit a low of 1.2879 at 9:50 pm ET. The next downside target level for the kiwi is seen at 1.296. At present, the aussie-kiwi pair is worth 1.2862, compared to 1.2824 hit late New York Monday.

Australia's PPI and NAB business confidence reports- both for the first quarter, which were released in the session likely influenced the Aussie.

The New Zealand dollar dropped against the euro in early Asian deals on Tuesday. The euro-kiwi pair that closed yesterday's trading at 1.8502 is presently worth 1.8571. On the downside, 1.874 is seen as the next target level for the NZ currency.

Looking ahead, Japan's small business confidence report for April is due at 1:00 am ET.

In the European session, the German import price index for March, GfK consumer confidence index for May, French and the Italian consumer confidence index for April have been slated for release.

Across the Atlantic, the U.S. consumer confidence index for April and the S&P/Case-Shiller home price index for February are expected in the New York morning.

The Federal Reserve Open Market Committee is scheduled to meet on Tuesday and make an announcement regarding its near-term direction of monetary policy on Wednesday.

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