In Asian trading Monday, NZD/USD is lower by 0.19% at 0.8357, following the release of a March PMI report out of China. China reported March PMI of 50.9, slightly below analysts’ estimates calling for 51.2. Readings above 50 indicate expansion. EUR/NZD fell 0.11% to 1.5299 after Cypriot President Nicos Anastasiades agreed to punitive losses for the Bank of Cyprus’s larger depositors in order to land EUR10 billion in aid to keep his country from going bankrupt. Cyprus was forced to agree to the levies against large Bank of Cyrpus depositors after failing to secure financial assistance from Russia. Under the terms of the new plan, Bank of Cyprus depositors will have 37.5% of their deposits above EUR100,000 turned into voting shares in the bank, which would also entitle the depositors to future dividends. Another 22.5% of the deposits will be withheld to ensure the bank is properly capitalized. NZD/JPY slid 0.50% to 78.50 as traders embraced the yen as a safe-haven alternative to the USD. AUD/NZD is flat at 1.2445.
EasyForexNews Research Team