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Forex - NZD/USD slips as market sentiment wanes

Published 12/01/2011, 03:06 AM
NZD/USD
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AUD/NZD
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Investing.com - The New Zealand dollar slipped against its U.S. counterpart on Thursday, as ongoing concerns over the debt crisis in the euro zone overshadowed the previous day’s brief rally in market sentiment.

NZD/USD hit 0.7760 during late Asian trade, the daily low; the pair subsequently consolidated at 0.7750, shedding 0.68%.

The pair was likely to find support at 0.7669, the low of November 15 and resistance at 0.7870, the high of November 11.

The kiwi rallied to two-week high against the greenback on Wednesday, after six major central banks, including the Federal Reserve and the European Central Bank agreed to lower dollar swap rates to prevent a lack of liquidity in the global financial system.

But investors remained cautious as the joint action was aimed at easing symptoms of the euro zone's debt crisis rather than treating the cause.

Earlier Thursday, official data showed that Chinese manufacturing activity contracted in November for the first time in nearly three years, adding to concerns over a global economic slowdown.

Elsewhere, the kiwi was up against the Australian dollar with AUD/NZD declining 0.23%, to trade at 1.3140.

Also Thursday, official data showed that retail sales in Australia rose less-than-expected in September, while building approvals dropped unexpectedly in October.
 
Later in the day, the U.S. was to release its weekly report on initial jobless claims, while the Institute of Supply Management is to release data on manufacturing activity.

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