NZD/USD Lower After RBNZ Governer Says Intervention Possible

        0506 GMT [Dow Jones] The NZD/USD is lower late in New Zealand after the Reserve Bank Governor Graeme Wheeler said the NZD is overvalued and if it remains high the central bank could opt to intervene in the currency markets. The pair is at 0.8691. Softer-than-expected wage inflation data added to the pressure. "The Kiwi is lower, as you would expect with a wage cost report showing very soft wage inflation still and Wheeler's speech, which reminded us the high Kiwi will probably translate into a lower interest rate track and also that they are one step closer to intervening," said Westpac Bank Senior Strategist, Imre Speizer. However, he does not expect it to push below 0.8650, although "alot depends on how the U.S. performs overnight." Key for markets will be testimony from Federal Reserve Chairwoman Janet Yellen later in the global trading day. (rebecca.howard@wsj.com; Twitter: @FarroHoward)
        (END) Dow Jones Newswires

        May 07, 2014 01:06 ET (05:06 GMT)