The New Zealand dollar slipped to a 1-week low against the US and Australian dollars despite a rally in stock markets. The kiwi dropped to a 6-day low against the euro and showed modest weakness against the yen.

The benchmark NZX 50 index was up 13.04 points or 0.50% to 2,603.44 shortly after the market opened for the day, while the broader NZX All Capital Index added 25.66 points or 0.97% to 2,661.03.

The New Zealand fell to a weekly low of 0.5559 against the US dollar during Wednesday's early Asian trading. This may be compared to Tuesday's closing value of 0.5598. The next downside target level for the kiwi is seen around 0.540.

From US, the ADP National Employment report, which sheds light on non-farm private employment, is scheduled to be released at 8:15 am ET today. The report is usually released two days prior to the Labor Department's employment report.

The results of the manufacturing survey of the Institute for Supply Management, which are based on data compiled from purchasing and supply executives nationwide, are due out at 10 am ET today. Economists expect the index to show a reading of 36 for March.

At the same time, the Commerce Department's construction spending report to be released and it is expected to show a 1.6% decline in spending for February.

Data on Pending Home Sales, which is a leading indicator of housing market activity released by the National Association of Realtors, is also due out at 10 am ET. The index is likely to show a 2% decline for February.

At about 8:30 pm ET Tuesday, the New Zealand currency declined to a 6-day low of 2.3815 against the euro. The kiwi may likely target the 2.40 level, if it ticks down further. At Tuesday's New York session close, the euro-kiwi pair was quoted at 2.3697.

German retail sales, Euro-Zone unemployment report, Italian, German, French and Euro-Zone manufacturing PMI reports are scheduled for the upcoming session from the euro- area.

The NZ dollar edged down against the Japanese yen too during this time period. The pair that was worth 55.42 at yesterday's close, hit as low as 54.79 by about 8:20 pm ET. On the downside, the NZ dollar may likely find support near the 53.7 level.

On the economic front, the much-awaited BoJ Tankan survey showed a record decline for large manufacturers index. Japanese sentiment among large manufacturers plummeted at a record rate in the first quarter of 2009, posting a diffusion index score of -58. That was worse than analyst expectations for -55 following a score of -24 in the previous quarter.

It was the sixth straight quarter of decline, and the fall of 34 points from the previous survey in December marked the largest fall on record.

The New Zealand dollar dropped against the Aussie during Wednesday's early Asian trading, slipping to a 1-week low of 1.2400. If the New Zealand dollar slides further, it may test support around the 1.25 level. The pair was worth 1.2367 at yesterday's New York session close.

The Australian Bureau of Statistics said that retail sales in Australia were down a seasonally adjusted 2.0 percent in February compared to the previous month, representing the largest monthly decline since July 2000. Sales came in at A$18.87 billion, down from A$19.26 in January but up from A$18.12 billion a year earlier. Analysts had expected a decline of 0.3 percent on month following the revised 0.5 percent increase in January and the 3.8 percent gain in December.

Additionally, the Department of Employment and Workplace Relations said that skilled job vacancies in Australia were down 10.8 percent in March compared to the previous month, posting an index score of 40.7.

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