Investing.com – The New Zealand dollar fell sharply in Asia on Thursday after lower than expected consumer price data, while the dollar held ground.
NZD/USD traded at 0.7871, down 0.73%. USD/JPY was flat at 107.15, and AUD/USD changed hands at 0.8771, down 0.08%.
The NAB business confidence and conditions index for the third quarter is due at 0030 GMT, while the China HSBC flash manufacturing figure for October is due at 0145 GMT.
Earlier, New Zealand said third quarter CPI rose 0.3%, well below the 0.5% gain expected.
Overnight, the dollar traded largely higher against most major currencies after U.S. inflation data met consensus forecasts, while expectations for the European Central Bank to loosen policy supported the unit further.
The Labor Department reported earlier that the U.S. consumer price index rose 0.1% in September, meeting estimates and following a 0.2% decline in August, which sent investors flocking to the greenback.
Year-over-year, consumer prices rose 1.7% in September, beating expectations for a 1.6% reading.
Core consumer prices, which exclude food and energy costs, rose 0.1% in September, disappointing expectations for a 0.2% gain. Core consumer prices were flat in August, though the overall report confirmed market expectations for the Federal Reserve to make monetary policy less accommodating going forward.
The euro, meanwhile, continued to come under pressure after Reuters reported earlier this week that the European Central Bank may purchase corporate debt to boost slowing inflation rates in the euro area and kick start recovery.
The report said the bank could activate the new stimulus plan as soon as December and begin bond purchases by early next year.
The ECB began purchasing covered bonds on Monday in a bid to increase liquidity in the region, and talk of fresh stimulus programs softened the euro.
An ECB spokesperson said no decision had been taken but the report was seen as an indication that the bank is moving closer to purchasing government debt.
Reports by Spanish news agency Efe that at least 11 European banks are set to fail ECB stress tests this weekend also hit demand for the euro.
The ECB was to announce the results of stress tests on 130 banks on Sunday.
The US dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.04% at 85.82.
On Thursday, the U.S. is to publish its weekly report on initial jobless claims.
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