The New Zealand dollar weakened against the other major currencies in the Asian session on Wednesday, after global dairy prices fell at the latest GlobalDairyTrade (GDT) auction.
In the auction held overnight, the GDT price index dropped 3 percent to US$2,880, and whole milk powder prices declined 3.8 percent to US$2,681 a tonne.
Meanwhile, the Asian stock markets traded lower after Federal Reserve officials made the case for raising interest rates. In addition, Bloomberg reported that the European Central Bank will probably wind down its $90-billion monthly bond purchases.
The ECB later said the report was erroneous, but investors remained concerned about the health of the euro zone economy and European financial sector.
Concerns about the global economy and the fall in gold prices overnight weighed on investor sentiment.
A poll conducted by CNN/ORC on U.S. presidential election from the first presidential debate showed that Hilary Clinton took a five-point lead at 47 percent over rival Donald Trump at 42 percent. The news also weighed on the currency.
Crude oil was unable to fight back above $50 on Tuesday on signs of increased production from Iran and Libya.
In other economic news, data from ANZ showed that New Zealand's commodity prices rose for the fifth successive month in September. The ANZ commodity price index climbed 5.1 percent month-over-month in September, faster than August's 3.2 percent increase.
The NZD ANZ commodity price index went up 3.9 percent from August, when it rose by 1.9 percent. On an annual basis, the NZD ANZ commodity price index fell 5.0 percent in September, much faster than the 0.5 percent drop in August.
Tuesday, the NZ dollar showed mixed trading against its major rivals. While the kiwi rose against the yen and the euro, it fell against the U.S. and Australian dollars.
In the Asian trading, the NZ dollar fell to nearly a 1-1/2-month low of 1.5635 against the euro and a 2-day low of 73.77 against the yen, from yesterday's closing quotes of 1.5529 and 74.16, respectively. If the kiwi extends its downtrend, it is likely to find support around 1.58 against the euro, and 71.00 against the yen.
Against the U.S. and the Australian dollars, the kiwi dropped to nearly a 2-month low of 0.7175 and more than a 1-1/2-month low 1.0634 from yesterday's closing quotes of 0.7208 and 1.0564, respectively. The kiwi may test support near 0.70 against the greenback, and 1.07 against the aussie.
Looking ahead, at 1:30 am ET, Reserve Bank of Australia Assistant Governor (Economic) Christopher Kent participates in a panel discussion at the Melbourne Institute Macroeconomic Policy Meeting.
PMI reports from major European economies foe September and Eurozone retail sales data for August are slated for release later in the day.
At 4:30 am ET, Bank of England deputy governor Ben Broadbent will deliver a speech at Wall Street Journal's London office.
In the New York session, U.S. and Canada trade balance for August, U.S. ADP private sector jobs data for September, Markit's U.S. PMI for September, U.S. ISM non-manufacturing PMI for September, U.S. factory orders and durable goods orders - both for August - and U.S. EIA's crude oil inventory data are set to be published.
At 9:30 am ET, Federal Reserve Bank of Minneapolis President Neel Kashkari will give welcome and opening remarks before the "Early Childhood Development in Indian Country" Conference hosted by the Federal Reserve Bank of Minneapolis.
At 1:00 pm ET, Federal Reserve Bank of Richmond President Jeffrey Lacker will participate in conversation and remarks with students at Marshall University prior to an afternoon lecture, in Huntington, Indiana.
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