NZ Dollar Weakens Amid Rising Aversion
November 14 2017 - 9:33PM
RTTF2
The New Zealand dollar dropped against most major opponents in
late Asian deals on Wednesday amid rising risk aversion, as Asian
stock markets fell following the negative lead from Wall Street
amid overnight fall in crude oil prices.
oil prices fell almost 2 percent overnight on concerns about
global demand and rising production outside OPEC.
The International Energy Agency on Tuesday warned of weakening
oil demand for this year and next and said the U.S. shale supply
would grow strongly for the next decade.
The Paris-based agency slashed its oil demand growth to 1.5
million barrels per day this year, and only 1.3 mb/d in 2018.
Data showing a surge in stockpiles by industry body American
Petroleum Institute also dampened oil prices.
The American Petroleum Institute reported a build of 6.513
million barrels of crude oil inventories, while analysts were
expecting a decline of 2.850 million barrels.
The kiwi dropped to near a 3-week low of 1.7174 against the euro
and more than a 2-week low of 77.68 against the yen, from its early
highs of 1.7116 and 78.10, respectively. If the kiwi falls further,
1.74 and 76.00 are likely seen as its support levels against the
euro and the yen, respectively.
The kiwi reversed from its early high of 0.6888 against the
greenback, falling to 0.6862. The next possible support for the
kiwi is seen around the 0.67 area.
On the flip side, the kiwi held steady against the aussie, after
touching near a 4-week peak of 1.1010 at 9:00 pm ET. The pair
finished Tuesday's trading at 1.1094.
Looking ahead, Federal Reserve Bank of Chicago President Charles
Evans speaks on the economy in a panel before the UBS European
Conference, London, at 3:00 am ET.
The U.K. ILO unemployment rate for the three months ended
September and Eurozone trade data for September are due in the
European session. At 5:00 am ET, the ECB chief economist Peter
Praet and Denmarks Nationalbank governor Lars Rohde speak at
conference "At the heart of policy: challenges and opportunities of
central bank communication" organised by the ECB in Frankfurt,
Germany. In the New York session, U.S. consumer prices and retail
sales for October, business inventories for September and New York
Fed's empire manufacturing for November as well as Canada existing
home sales for October are set for release.
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