New Zealand Dollar Declines Amid Weakening European Shares

The New Zealand dollar lost ground against its major counterparts in early European trading on Friday, as Brexit woes and a sense of uncertainty over the high-level trade negotiations between the U.S. and China kept investors nervous.

Hopes faded for a resolution to the Sino-U.S. trade dispute after U.S. Vice President Mike Pence adopted a hard line in a speech Thursday laying out President Donald Trump’s China policies and reiterating U.S. support for protesters in Hong Kong.

On the Brexit front, British Prime Minister Boris Johnson said Thursday he would ask Parliament to vote Monday on a motion calling a national election for Dec. 12.

European Union is likely to delay a decision on whether to grant an extension to the Brexit deadline.

After ECB President Mario Draghi defended the use of negative interest rates in monetary policy during his final press conference in Frankfurt, investors now await directional cues from the Fed and BoJ meetings next week.

The currency has been trading lower against its major counterparts in the Asian session.

Extending its early slide, the kiwi dropped to a weekly low of 0.6356 against the greenback. At yesterday’s close, the pair was worth 0.6383. The kiwi is seen finding support around the 0.62 region.

The kiwi fell to 4-day lows of 1.7491 versus the euro and 69.04 against the yen, from its previous highs of 1.7386 and 69.35, respectively. The next likely support for the kiwi is seen around 1.77 versus the euro and 67.00 against the yen.

Having risen to 1.0675 against the aussie at 5:00 pm ET, the kiwi reversed direction and touched a 4-day low of 1.0739. On the downside, 1.095 is possibly seen as the next support level for the kiwi.

Looking ahead, the University of Michigan’s consumer sentiment index for October is scheduled for release in the New York session.

The material has been provided by InstaForex Company – www.instaforex.com