Weak Data Sends Kiwi Tumbling in Forex Trading

Weak data out of New Zealand is sending the kiwi tumbling in forex trading on the currency market. Labor data turned out to be much weaker than expected, and is undermining the strength of the New Zealand economy.

This news from down under isn't doing much for the Australian dollar, either, which is also lower against the U.S. dollar in currency trading on the FX market. GFT's Boris Schlossberg reports in FX360 on the Kiwi in forex trading:

The kiwi tumbled more than ¾ of a penny to a low of .7275 on the aftermath of the report and remained moribund at those levels. The unit is likely to underperform for the rest of the week especially against the euro and the yen as traders temper their expectations of New Zealand economic growth going into the second half of 2010.

Clearly the forex trading forecast for down under currencies is cooling quite a bit right now. However, kiwi and Aussie still have the highest rates of developed nations, and it looks as though the ECB and the BOE are content to stay put for now.