New Zealand Dollar Consolidating Before RBNZ Speech

 
  By Rebecca Howard 
 

        WELLINGTON, New Zealand--The New Zealand dollar continued to consolidate Tuesday ahead of a speech by the central bank governor early Wednesday.
        The Kiwi is continuing to hold up, despite ongoing volatility in China's stock market, said ANZ Bank Senior FX Strategist Sam Tuck. "Generally we are seeing position-related consolidation," he said. "It is trading within the range we would expect, tending toward the top end of that range as some position reduction occurs," he added.
        He noted that Reserve Bank of New Zealand Governor Graeme Wheeler's speech early Wednesday is key for markets and there is a growing expectation that he might be taking a "glass half-full approach" regarding the economy, which is contributing to the position reduction.
        Mr. Tuck noted, however, the focus will then shift to events next week, including jobs data and the next GlobalDairyTrade auction.
        "We are quite happy to have a period of consolidation and positioning feels like it needs to be cleaned out a little bit before we get any further declines," he said.
        The New Zealand dollar was at US$0.6666 in late Wellington trading, compared with US$0.6597 late Monday. It was at A$0.9105 versus A$0.9048 previously.
        Write to Rebecca Howard at rebecca.howard@wsj.com; @FarroHoward
        (END) Dow Jones Newswires

        July 28, 2015 01:19 ET (05:19 GMT)

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