NZD-USD bounced back toward the top of the recent range on the back of the overnight dollar weakness. Kiwi found some early support in Asia on short-covering in JPY crosses, but gains stalled at 0.6402, below the NY highs on Tuesday of 0.6419. Overall, Kiwi still remains within the recent range of 0.6250-0.6500 and traders are wary of taking on long positions in the Kiwi ahead of the Q1 current account data Thursday and the key Q1 GDP data Friday which some forecasters are saying could be the weakest GDP yet out of New Zealand. The market as a whole is wary of new positioning ahead of the FOMC result later today. In slightly positive news out of New Zealand, a survey for Hudson shows that hiring expectations in New Zealand have improved for the first time in tow years, with a small net 0.5% of employers intending to add permanent staff in the Jul-Sept quarter. New Zealand Q2 consumer confidence rose to 106 from 96.0 in Q1, according to the latest Westpac McDermott Miller Survey and an 18 month high. The rise above 100 signals more optimists than pessimists with the index recovering from a 17-yr low in June quarter 2008 of 81.7. Resistance remains at 0.6420, 0.6450-60 and 0.6500 on Kiwi with support at 0.6372.

USD-CAD dropped in Asian trading reportedly on CAD-JPY demand for the Toshin fund launch. USD-CAD edged to lows of 1.1469, but as with other currency pairs, the move was stymied by the lows seen in NY. A fall in oil prices in Asia, on news of the sharp drop in Japan crude imports, helped temper CAD gains.