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    Kiwi down slightly after RBNZ holds at 2.25%, signals ease bias

    The Kiwi eased slightly on Thursday after the New Zealand central bank held the official cash rate steady at 2.25% and signaled room for easing.

    NZD/USD traded at 0.7090, down 0.03%.

    USD/JPY changed hands at 106.93, down 0.06%, while AUD/USD was quoted at 0.7488, down 0.01%.

    Ahead, in Japan, core machinery orders are due for April with a 3.8% drop seen month-on-month and a year-on-year decline of 2.3%.

    In China, CPI data for May is expected to show a 0.2% drop month-on-month for an pace of a 2.3% gain year-on-year, while producer prices are seen down 3.3% year-on-year.

    The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last quoted at 93.59.

    Overnight, the dollar fell to fresh one-month lows against the other major currencies in quiet trade on Wednesday, as uncertainty over the timing of the next U.S. rate hike continued to dampen demand for the greenback.

    Sentiment on the greenback remained fragile after Federal Reserve Chair Janet Yellen indicated on Monday that the U.S. central bank won’t be raising interest rates until uncertainty over the economic outlook is resolved.

    Yellen said she expects the economic recovery to continue but gave no indications on the timing of a next rate increase.

     


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