Kiwi continues to bounce from 6-week high against US dollar

New Zealand dollar fell during the Asian session, to continue its drop for the second session from its highest level since September 13, when it tested the highest since August 15 against the US dollar, which comes after the release of major economic data by New Zealand's economy and ahead of similar data releases on Wednesday by the US economy.

As of 02:58 GMT, NZD/USD fell by 0.25% to 0.6389, after opening at 0.6405, with a session-low of 0.6386 and a high of 0.6413.

The New Zealand economy released its reading for the trade balance, which showed that the deficit narrowed to NZ $1,242 million vs. NZ $1,628 million in August, better than forecasts of NZ $1,375 million, as the exports and imports rose more than expected last month.

While the US economy will release it reading for the house price index (HPI) later today, with forecasts of growth at 0.4% unchanged from previous reading for July, the US Department of the Treasury will also unveil its monthly federal budget statement, with forecasts of a surplus of $83.5 billion versus a deficit of $200.3 billion in August.