The NZ dollar weakened against its major rivals in the Asian session on Wednesday, after the Reserve Bank of New Zealand maintained its interest rate and quantitative easing unchanged as social restrictions to contain the spread of coronavirus were relaxed and domestic operations resumed earlier than expected.

The Monetary Policy Committee of the Reserve Bank of New Zealand decided to hold its interest rate at a record low 0.25 percent.

The asset purchase programme was retained at NZ$60 billion after raising it from GBP 33 billion last month.

However, the MPC said it is prepared to provide additional stimulus as necessary. As well as potentially expanding the large scale asset purchase programme, the committee continues to prepare for the use of additional monetary policy tools as needed.

The bank observed that the severe economic disruption caused by the coronavirus, or Covid-19, pandemic is persisting, leading to lower economic activity, employment and inflation. Further, the negative impact was exacerbated by the border restrictions and the appreciation of the New Zealand dollar.

The kiwi dropped to a 2-day low of 68.66 against the yen, from a high of 69.39 hit at 8:15 pm ET. If the kiwi weakens further, 64.00 is possibly seen as its next support level.

Reversing from a high of 0.6514 seen at 9:15 pm ET, the kiwi edged down to 0.6450 against the greenback. The kiwi may challenge support around the 0.62 mark.

The kiwi dropped to an 8-day low of 1.7532 against the euro, after rising to 1.7382 at 8:15 pm ET. Next key support for the kiwi is likely seen around the 1.78 level.

The kiwi fell to 1.0755 against the aussie, its lowest level since June 5. The kiwi is seen finding support around the 1.09 region.

Looking ahead, Swiss economic sentiment index and German Ifo business seniment index for June are set for release in the European session.

The Federal Housing Finance Agency's U.S. house price index for April will be issued at 9.00 am ET.

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De Jul 2020 a Ago 2020 Haga Click aquí para más Gráficas Euro vs NZD.
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De Ago 2019 a Ago 2020 Haga Click aquí para más Gráficas Euro vs NZD.