Investing.com - The New Zealand dollar fell Thursday after the central bank signalled a pause in a tightening cycle.
The Reserve Bank of New Zealand hiked the Official Cash Rate for the fourth time in a row as widely expected and signaled a period of pause as it assesses the impact.
Governor Graeme Wheeler raised the OCR by 25 basis points to 3.5% and said the economy "appears to be adjusting to the monetary policy tightening that has taken place since the start of the year."
"It is prudent that there now be a period of assessment before interest rates adjust further towards a more-neutral level."
NZD/USD traded at 0.8616, down 0.65%, after the decision.
Later, New Zealand reports its trade balance for June with a surplus of NZ$150 million expected month-on-month.
Japan June trade data is due at 0850 Tokyo time (2350 GMT). The forecast is for a trade deficit worth ¥643 billion, the 24th straight monthly shortfall.
Another key event today is the release of HSBC's China flash manufacturing PMI for July due at 0945 local time (0145 GMT). A jump in the June reading to 50.7 from 49.4 in May indicated that the economy is finally turning around.
Then, at 1245 local time (0545 GMT) BOJ Governor Haruhiko Kuroda is due to give a speech at a policy forum in Bangkok hosted by the Bank of Thailand. His Q&A session is scheduled to start after that.
Overnight, the dollar traded largely higher against most major currencies, buoyed by Tuesday's inflation and home sale data as well as upbeat earnings, though geopolitical tensions in Ukraine weighed on the greenback's advance.
The Labor Department reported Tuesday that the U.S. consumer price index rose 2.1% in June, unchanged from the previous month and in line with forecasts.
On a month-over-month basis, U.S. consumer prices were up 0.3% after a 0.4% increase in May, also in line with expectations.
Separately, reports that two Ukrainian jet fighters were shot down over the rebel-held city of Donetsk only days after pro-Russian separatists allegedly shot down a Malaysian Airlines flight with a missile rattled nerves, which took its toll on the dollar, the euro and other currencies.
The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.03% at 80.88.
On Thursday, the U.S. is to produce data on unemployment claims, manufacturing activity and new home sales.