In early European deals on Wednesday, the New Zealand dollar reversed the losses it incurred in Asian trading against the currencies of US, Europe and Japan. The kiwi thus recovered from a 6-day low against the greenback and the yen. Meanwhile, the NZ dollar remained higher against the aussie today.

The NZ dollar gained against the US currency after hitting a 6-day low of 0.5695 at 2:35 am ET Wednesday. Currently, the kiwi-greenback pair is worth 0.5754, compared to Tuesday's close of 0.5763. The near term resistance level for the pair is seen at 0.589.

The NZ dollar fell to a 6-day low of 56.75 against the yen before bouncing back at 2:45 am ET Wednesday. As of now, the kiwi-yen pair is trading at 57.50 with 59.00 seen as the next target level. The pair was worth 57.85 at Tuesday's close.

The current account balance in Japan swung to a surplus in February, coming in at 1.116 trillion yen, the Ministry of Finance said in a preliminary report today. That's down 55.6 percent on year, even though it beat expectations for a surplus of 1.071 trillion yen following the record 172.8 billion yen shortfall in January.

Meanwhile, the Bank of Japan maintained its economic assessment by saying that economic conditions have deteriorated significantly in Japan. The BoJ stated, Japan's economic conditions are likely to continue deteriorating for the time being, reiterating its view last month.

The central bank said in its Monthly Report of Recent Economic and Financial Developments that financial conditions have remained tight.

Against the euro, the NZ dollar slipped to 2.3135 by about 2:35 am ET Wednesday. Thereafter, the kiwi recovered and the pair is presently quoted at 2.2990, compared to 2.3036 hit late New York Tuesday. If the kiwi strengthens further, it may test near term resistance around the 2.288 level.

Germany's Federal Statistical Office announced today that the trade surplus stood at EUR 8.7 billion in February, up from EUR 7 billion surplus recoded in the previous month. Economists had expected the surplus of EUR 7.5 billion.

During early deals on Wednesday, the New Zealand dollar advanced against the aussie and reached a high of 1.2304 at 5:40 am ET. The next upside target level for the kiwi is seen at 1.221. At yesterday's close, the aussie-kiwi pair was quoted at 1.2355.

On the economic front, the Westpac/Melbourne Institute's survey of consumer sentiment for April showed that Australian consumer confidence surged 8.3% to 92.7 points in April.

A separate report from the Australian Bureau of Statistics showed that the number of loans for new homes in Australia increased in February by a seasonally adjusted 0.4 percent over January, while the value of owner-occupied home construction permits increased 2.7 percent.

Traders are now likely to focus on the New York session, in which the US Commerce Department is due to release its wholesale inventories report at 10 am ET. Economists expect wholesale inventories at the end of February to show a 0.6% decline.

The Energy Information Administration is scheduled to release its weekly petroleum inventory report at 10:30 am ET.

At 2:00 pm ET, the Federal Reserve is scheduled to release the minutes of its March 17th-18th meeting.

Along with an announcement to keep interest rates unchanged at exceptionally low levels following its two-day FOMC meeting in March, the Fed said it would purchase $300 billion worth of longer-term securities over the next 6 months. Additionally, the Fed said it will buy an incremental $750 billion worth of mortgage-backed securities and $100 billion of government sponsored enterprises - GSE debt. The Fed also said it intends to add $100 billion to its purchases of agency debt.

For comments and feedback: contact editorial@rttnews.com