The New Zealand dollar that declined against its most major counterparts in early Thursday Asian trading reversed direction shortly. The kiwi thus soared to a 2-day high against the yen. Against the Aussie, the kiwi remained down during this time.

New Zealand stock market opened marginally lower today despite a positive overnight lead from the Wall Street, where the major U.S. averages closed higher after better-than-expected economic data raised hopes of improvement in the economy.

The benchmark NZX 50 index was down 5.65 points or 0.22% to 2,563.58 shortly after the market opened for the day, while the broader NZX All Capital Index slipped 6.33 points or 0.24% to 2,612.79.

The New Zealand dollar advanced against the US currency after hitting a low of 0.5640 at 8:25 pm ET Wednesday. The kiwi-greenback pair rose to 0.5697 by about 10:25 pm ET and this may be compared to yesterday's New York session close of 0.5677. If the pair moves up further, it may find near term resistance around the 0.574 level.

The New Zealand dollar fell to 55.57 against the Japanese yen by about 8:25 pm ET Wednesday. Thereafter, the kiwi strengthened and reached a 2-day high of 56.26 at 10:25 pm ET. On the upside, 56.8 is seen as the next target level for the NZ currency. The kiwi-yen pair was worth 55.93 at yesterday's close.

The Bank of Japan said today that the monetary base in Japan was up 6.9% on year in March, standing at 94.46 trillion yen. That's up from 93.65 trillion yen in February, which saw a 6.4% annual increase. Seasonally adjusted, the monetary base was up 5.6% on month at 94.3 trillion yen.

The New Zealand dollar slipped to 2.35 against the euro before bouncing back at 8:45 pm ET Wednesday. The euro-kiwi pair that closed yesterday's deals at 2.3335 is presently quoted at 2.3375. The near term resistance level for the NZ dollar is seen at 2.325.

Against the Aussie, the NZ dollar declined to 1.2410 during early Asian deals on Thursday. The next downside target level for the kiwi is seen at 1.244. At yesterday's close, the aussie-kiwi pair was quoted at 1.2320.

The Australian Bureau of Statistics data showed that Australia posted a seasonally adjusted trade surplus of a sharply better-than-expected A$2.11 billion in February. Exports jumped 4% from the previous month, while imports were down 1% on month.

In the European session, the French PPI for February has been slated for release.

At 7:45 am ET, the European Central Bank is scheduled to announce its interest rate decision. Analysts expect the central bank to trim rates by 50bps to a record low of 1%.

Amid expectations that the ECB will slash rates, the market is focusing on whether the central bank will open the door for quantitative easing as its counterparts in the United States, Britain and Japan have already done.

Across the Atlantic, the US factory orders for February and the weekly jobless claims report are expected.

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