Forexpros – The New Zealand dollar weakened against its U.S. counterpart early Thursday after China released inflation figures that came in higher than expected at 4.5%.
In Asian trading on Thursday, NZD/USD hit 0.8338, down 0.17% and up from a session low of 0.8322 and off from a high of 0.8354.
The pair sought to test support at 0.8287, Monday’s low, and resistance at 0.8408, Wednesday’s high.
China’s annual inflation rate of 4.5% in January outpaced expectations for 4.0%, fueling sentiment that China may take steps to cool price hikes by avoiding stimulus policies, which could take the wind out of the sails of the country’s trading partners like New Zealand.
Meanwhile in New Zealand, the unemployment rate hit a seasonally adjusted 6.3% in the fourth quarter of last year compared to 6.6% in the preceding quarter.
Analysts had expected an unemployment rate to fall to 6.5% in the last quarter.
The New Zealand dollar, meanwhile, was up against the yen and up against its Australian counterpart, with NZD/JPY gaining 0.02% to 64.35 and AUD/NZD down 0.11% at 1.2922.
Later Thursday, Japan is to release government data on core machinery orders, a key gauge of production.
The U.K. will release official data on manufacturing output as well as figures on the country’s trade balance.
Also Thursday, the Bank of England is to announce its plans for benchmark interest rates.
The ECB is also to announce set to address benchmark interest rates as well, followed by a press conference.
The press conference will draw close market scrutiny, as the world will be keen on language hinting at a need for new monetary measures to counter the region’s sovereign debt crisis.
Later in the day, the U.S. is to publish government data on initial jobless claims, a key signal of overall economic health.
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