NZ Dollar Falls As NZ Inflation Expectations Ease For Two Years Ahead

The New Zealand dollar weakened against its major rivals in Asian session on Monday, after a survey showed that NZ firms lowered their growth forecasts and expectations for inflation rate over the next two years.

The Reserve Bank of NZ's survey of expectations showed that expectations for inflation dropped to 2.02 percent from 2.09 percent for two years ahead. Meanwhile, inflation expectations for one year increased to 1.87 percent from 1.77 percent in the previous survey.

Expectations for annual real GDP growth decreased to 2.65 percent from 2.75 percent for the year ahead. In two years, the real GDP growth is seen at 2.45 percent, down from its prior forecast of 2.64 percent.

Meanwhile, U.S. President Donald Trump's 12-day trip to Asia got underway and investors kept an eye on the developments in Saudi Arabia after an anti-corruption crackdown resulted in the arrest of several Saudi princes and ministers, including prominent investor Prince Alwaleed Bin Talal.

Investors also awaited directional cues from a slew of central bank meetings as well as Chinese current account, foreign-exchange reserves and consumer inflation data due this week.

OPEC releases its World Oil Outlook report on Tuesday while the ECB's economic bulletin and the European Commission's updated economic forecasts for the euro area are due on Thursday.

The finance ministers of the euro-zone will convene in Brussels later today to discuss the future of the euro zone and prepare for the December 15 euro summit.

The kiwi dropped to a 4-day low of 78.59 against the yen, from a high of 79.18 hit at 8:30 pm ET. If the kiwi drops further, 77.00 is possibly seen as its next support level.

The kiwi weakened to a 5-day low of 0.6875 against the greenback, compared to last week's closing value of 0.6903. Continuation of the kiwi's downtrend may see it challenging support around the 0.67 region.

Having advanced to 1.6791 against the euro at 5:00 pm ET, the kiwi slipped to a 4-day low of 1.6890. The next possible support for the kiwi is seen around the 1.70 area.

The kiwi declined to 1.1127 against the aussie, off its previous high of 1.1063. On the downside, 1.14 is possibly seen as the next support level for the kiwi.

Looking ahead, Swiss consumer prices for October, PMIs from major European economies, Eurozone producer prices for September and Sentix investor confidence for November are due in the European session.

At 10:00 am ET, Canada Ivey PMI for October is set for release.

New York Fed President William Dudley speaks about lessons from the financial crisis at the Economic Club of New York luncheon at 12:10 pm ET.

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