Investing.com – The Kiwi traded nearly flat on Thursday in Asia after trade data that came in wider than expected ahead of an otherwise light regional data day.
traded at 0.7151, down 0.01%, after the data. traded at 0.7644, down 0.09%, ahead of prices data and changed hands at 104.55, up 0.08%. traded at 1.2236, down 0.07%.
In New Zealand, the September trade balance came in at a deficit of NZ$ 1.436 billion , and at a gap of NZ$ 3.4 billion, both wider than expected.
Ahead, Australia reports the and figures for the third quarter.
The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last quoted at 98.59.
Overnight, the dollar was broadly lower on Thursday after hitting near nine-month highs in the previous session on the back of expectations for a U.S. rate hike, while sterling regained ground as expectations for a rate cut next week diminished.
The index has rallied so far this month as hawkish remarks by Fed officials in recent weeks cemented expectations for a rate hike before the year’s end. Expectations for higher interest rates typically boost the dollar by making the currency more attractive to yield-seeking investors.
The Fed’s next meeting is in November, but a rate hike ahead of the presidential election is seen as unlikely.
Investors are currently pricing a 78.3% chance of a rate hike at the Fed’s December meeting; according to federal funds futures tracked Investing.com’s Fed Rate Monitor Tool.
Investors were turning their attention to data on U.S. third quarter growth due for release on Friday for further cues.
Sterling fell on Tuesday to the lowest level since the flash-crash earlier this month, before rebounding after Bank of England Governor Mark Carney said the bank could not ignore the pound’s “fairly substantial” drop since the June 23 Brexit vote.
The comments were seen as an indication that the BoE will leave rates unchanged at its meeting next week.
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