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Forex - NZD/USD hits 4-day low amid global growth worries

Published 04/15/2013, 02:30 AM
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AUD/NZD
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Investing.com - The New Zealand dollar retreated to a four-day low against its U.S. counterpart on Monday, as fresh global growth concerns emerged after the release of downbeat Chinese gross domestic product data.

NZD/USD hit 0.8478 during late Asian trade, the pair's lowest since April 9; the pair subsequently consolidated at 0.8508, dropping 0.93%.

The pair was likely to find support at 0.8466, the low of April 9 and resistance at 0.8588, the session high.

Official data showed that the Chinese economy expanded by 7.7% year-on-year in the three months to March, down from 7.9% in the fourth quarter and undershooting expectations for 8.0% growth.

Separate reports showed that Chinese industrial production also came in below expectations, while retail sales rose slightly more than forecast.

The data reinforced concerns over the outlook for global growth after data on Friday showed that U.S. retail sales fell 0.4% in March, the largest decline in nine months.

China is also New Zealand's second biggest export partner.

The kiwi was lower against the Australian dollar with AUD/NZD rising 0.32%, to hit 1.2271.

Also Monday, official data showed that home loans in Australia rose 2% in February, beating expectations for a 1.6% increase, after a 0.3% slip the previous month.

Later in the day, the U.S. was to release data on manufacturing activity in New York state.





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