Investing.com - The New Zealand dollar fell against its U.S. counterpart on Wednesday, after data showed that New Zealand’s trade deficit narrowed less-than-expected in the first quarter, while investors remained cautious ahead of comments by the Federal Reserve later in the day.
NZD/USD hit 0.7946 during late Asian trade, the daily low; the pair subsequently consolidated at 0.7952, shedding 0.37%.
The pair was likely to find support at 0.7886, the low of June 18 and resistance at 0.8018, the high of May 4.
Official data showed earlier that New Zealand’s trade deficit narrowed to NZD1.31 billion in the first quarter from a deficit of NZD2.83 billion the previous quarter. Analysts had expected the trade deficit to narrow to NZD1.13 billion.
Meanwhile, investors awaited the conclusion of the Federal Reserve’s two-day policy meeting later Wednesday, amid growing expectations that policymakers may announce a third round of monetary stimulus after a recent string of weak economic data.
Markets were also eyeing political developments in Greece, amid reports local party leaders may be close to forming a coalition government, which would allow Athens to resume negotiations with creditors on its international bailout deal.
Elsewhere, the yield on Spanish 10-year bonds eased back to just below the critical 7% threshold, after climbing to euro-era highs earlier in the week, amid fears that Madrid will be forced to seek a full-fledged international bailout.
The kiwi was lower against the Australian dollar with AUD/NZD rising 0.38%, to hit 1.2814.
Also Wednesday, a report by the Conference Board showed that its leading index for Australia fell 1.4% in April, following a 0.2% decline the previous month, while a separate report showed that the Melbourne Institute’s leading index for Australia rose 0.5% in April, after a 0.5% gain the previous month.
Later Wednesday, the Fed was to announce its benchmark interest rate and publish its rate statement. The announcement was to be followed by a press conference with Fed Chairman Ben Bernanke to discuss the monetary policy decision.
NZD/USD hit 0.7946 during late Asian trade, the daily low; the pair subsequently consolidated at 0.7952, shedding 0.37%.
The pair was likely to find support at 0.7886, the low of June 18 and resistance at 0.8018, the high of May 4.
Official data showed earlier that New Zealand’s trade deficit narrowed to NZD1.31 billion in the first quarter from a deficit of NZD2.83 billion the previous quarter. Analysts had expected the trade deficit to narrow to NZD1.13 billion.
Meanwhile, investors awaited the conclusion of the Federal Reserve’s two-day policy meeting later Wednesday, amid growing expectations that policymakers may announce a third round of monetary stimulus after a recent string of weak economic data.
Markets were also eyeing political developments in Greece, amid reports local party leaders may be close to forming a coalition government, which would allow Athens to resume negotiations with creditors on its international bailout deal.
Elsewhere, the yield on Spanish 10-year bonds eased back to just below the critical 7% threshold, after climbing to euro-era highs earlier in the week, amid fears that Madrid will be forced to seek a full-fledged international bailout.
The kiwi was lower against the Australian dollar with AUD/NZD rising 0.38%, to hit 1.2814.
Also Wednesday, a report by the Conference Board showed that its leading index for Australia fell 1.4% in April, following a 0.2% decline the previous month, while a separate report showed that the Melbourne Institute’s leading index for Australia rose 0.5% in April, after a 0.5% gain the previous month.
Later Wednesday, the Fed was to announce its benchmark interest rate and publish its rate statement. The announcement was to be followed by a press conference with Fed Chairman Ben Bernanke to discuss the monetary policy decision.