The New Zealand dollar was weaker against its peers in the Asian session on Wednesday, after dairy prices in
Fonterra's GlobalDairyTrade auction dropped for the first time in three
months. Japanese yen was trading flat against the dollar.
In the overnight auction of Fonterra Co-operative Group, the GlobalDairyTrade index fell by 8.8% for the first time in three months. Prices at the GlobalDairyTrade auction dropped to an average of USD3136 a tonne, down from USD3374 at the previous fortnightly auction. The downbeat result has influenced the country's largest commodity export in reaching future economic growth.
The New Zealand's benchmark NZSE 50 index is also currently down 0.99% or 58.74 points at 5,846.
Yesterday, the kiwi dollar declined 0.77% against the US dollar, 0.79% against the yen, 1.11% against the euro and 0.10% against the Australian dollar.
In the Asian trading today, the NZ dollar fell to a 1-week low of 1.4527 against the euro, from yesterday's closing value of 1.4499. The kiwi is likely to find support around the 1.50 area.
The kiwi, which ended yesterday's deals at 1.0421 against the Australian dollar, depreciated to a 5-day low of 1.0439. On the downside, 1.06 is seen as the next support level for the kiwi.
Against the US dollar, the kiwi edged down to 0.7299 from yesterday's closing value of 0.7303. If the kiwi extends its downtrend, it is likely to find support around the 0.70 region.
The pair USD/JPY was trading at 121.34 at GMT0400, with the USD trading flat from yesterday's close, says Action Forex.
Earlier today, data showed that Japan's merchandise (total) trade deficit dropped to ¥424.60 billion in February from a revise trade deficit of ¥1179.10 billion in the previous month. Markets were anticipating the nation to record a deficit of ¥1000.80 billion
The pair is expected to find support at 121.14, and a fall through could take it to the next support level of 120.93, and the first resistance at 121.52, and a rise through could take it to the next resistance level of 121.71.
