Investing.com - The New Zealand dollar continued to lose steam against its U.S. rival during Tuesday’s Asian session following remarks made by Prime Minister John Key Monday.
In Asian trading Tuesday, NZD/USD fell 0.24% to 0.8016. The pair was likely to find support at 0.7887, the low of July 19 and resistance at 0.8100, the high of June 17.
On Monday, Key said the kiwi is still overvalued and that his government would not mind seeing the currency fall further.
Last week, the Reserve Bank of New Zealand left interest rates unchanged, but indicated that rates could rise early next year if signs of a property bubble emerge. The central bank said the pace of future interest rate increases will depend on the housing market's impact on prices and reiterated it will keep borrowing costs at a record low this year.
Key’s comments about the kiwi being overvalued echo those of other New Zealand policymakers made throughout the year. Politicians there have been concerned a strong kiwi will adversely impact the country’s manufacturing and industrial sectors.
RBNZ has previously intervened in the currency market, but the central bank has stopped short of lowering interest rates or engaging in quantitative easing.
Elsewhere, NZD/JPY fell 0.12% to 78.61 after data showed household spending in Japan fell 0.4% last month. Economists were expecting a 1.4% increase.
Another report showed Japanese industrial production dropped 3.3%, far worse than the 1.5% decline forecast by economists.
Separately, Japan’s Statistics Bureau said unemployment in the world’s third-largest economy fell to 3.9% in June from 4.1% in May. Economists expected the June reading to come in at 4%.
Meanwhile, AUD/NZD dropped 0.28% to 1.1428 while EUR/NZD rose 0.18% to 1.6542.
In Asian trading Tuesday, NZD/USD fell 0.24% to 0.8016. The pair was likely to find support at 0.7887, the low of July 19 and resistance at 0.8100, the high of June 17.
On Monday, Key said the kiwi is still overvalued and that his government would not mind seeing the currency fall further.
Last week, the Reserve Bank of New Zealand left interest rates unchanged, but indicated that rates could rise early next year if signs of a property bubble emerge. The central bank said the pace of future interest rate increases will depend on the housing market's impact on prices and reiterated it will keep borrowing costs at a record low this year.
Key’s comments about the kiwi being overvalued echo those of other New Zealand policymakers made throughout the year. Politicians there have been concerned a strong kiwi will adversely impact the country’s manufacturing and industrial sectors.
RBNZ has previously intervened in the currency market, but the central bank has stopped short of lowering interest rates or engaging in quantitative easing.
Elsewhere, NZD/JPY fell 0.12% to 78.61 after data showed household spending in Japan fell 0.4% last month. Economists were expecting a 1.4% increase.
Another report showed Japanese industrial production dropped 3.3%, far worse than the 1.5% decline forecast by economists.
Separately, Japan’s Statistics Bureau said unemployment in the world’s third-largest economy fell to 3.9% in June from 4.1% in May. Economists expected the June reading to come in at 4%.
Meanwhile, AUD/NZD dropped 0.28% to 1.1428 while EUR/NZD rose 0.18% to 1.6542.