Forex News: NZ Dollar Falls Amid Risk-off Mood

NZ Dollar Falls Amid Risk-off Mood

(RTTNews) - The New Zealand dollar weakened against other major currencies in the Asian session on Monday, as investors fretted over tech valuations and digested disappointing economic data from China. Renewed pessimism over the outlook for interest rates is also weighing on the markets.

Official data showed China's industrial production grew 4.8 percent year-on-year in November, missing forecasts for an increase of 5.0 percent and down from 4.9 percent in October.

Retail sales rose an annual 1.3 percent, well shy of forecasts for a gain of 3.0 percent and down from 2.9 percent in the previous month.

Fixed asset investment slumped 2.6 percent on year, missing forecasts for a loss of 2.4 percent after slumping 1.7 percent a month earlier. The jobless rate came in at 5.1 percent, unchanged and as expected. Crude oil prices weakened on Friday as traders kept an eye on the latest developments in the ongoing Russia-Ukraine conflict and escalating tensions between the U.S. and Venezuela. West Texas Intermediate crude for January delivery fell $0.20 or 0.4 percent at $57.40 per barrel.

In economic news, data from Business New Zealand showed that the services sector in New Zealand continued to contract in November, and at a faster rate, with a Performances of Services Index score of 46.9. That's down from 48.4 in October, and it moves further beneath the boom-or-bust line of 50 that separates expansion from contraction.

In the Asian trading today, the NZ dollar fell to a 5-day low of 0.5766 against the U.S. dollar, a 1-week low of 89.54 against the yen and nearly a 3-week low of 2.0350 against the euro, from Friday's closing quotes of 0.5809, 90.47 and 2.0223, respectively. If the kiwi extends its downtrend, it is likely to find support around 0.56 against the greenback, 87.00 against the yen and 2.07 against the euro.

Against the Australian dollar, the kiwi slipped to a 5-day low of 1.1520 from a recent 4-day high of 1.1448. On the downside, 1.16 is seen as the next support level for the kiwi.

Looking ahead, Eurozone industrial production for October is due to be released at 5:00 am ET in the European session.

In the New York session, Canada housing starts for November, CPI data for November, manufacturing sales data for October, U.S. NY Empire State manufacturing index for December and U.S. NAHB housing market index for December are slated for release.

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