Investing.com - The New Zealand dollar edged lower against its U.S. counterpart on Wednesday, as markets were jittery one day before the European Central Bank’s policy meeting, amid growing hopes the bank will take fresh action to stem the euro zone’s financial woes.
NZD/USD hit 0.7929 during late Asian trade, the daily low; the pair subsequently consolidated at 0.7934, edging down 0.13%.
The pair was likely to find support at 0.7887, the low of July 26 and resistance at 0.7986, the high of July 16.
Investors remained cautious ahead of the ECB’s monetary policy meeting on Thursday, amid expectations that the bank will give further the details on a long awaited bond-buying program designed to help ease funding pressures for indebted euro zone countries.
ECB President Mario Draghi told European lawmakers on Monday that purchases of short-term sovereign bonds to help debt-burdened countries like Spain and Italy would not breach European Union rules.
Market sentiment remained vulnerable however, amid growing fears that the central bank may disappoint.
Meanwhile, the greenback’s gains were limited after disappointing U.S.
manufacturing data on Tuesday added to speculation that the Federal Reserve may soon announce a fresh round of easing measures to shore up growth.
Elsewhere, the kiwi was higher against the Australian dollar with AUD/NZD shedding 0.20%, to hit 1.2843.
Also Wednesday, official data showed that Australia’s gross domestic product rose less-than-expected in the second quarter, rising 0.6% after a revised 1.4% increase the previous month.
Analysts had expected Australia’s GDP to rise 0.7% in the second quarter.
A separate report showed that an index of service sector activity for Australia ticked down to 42.4 in August from a reading of 46.5 the previous month.
Later in the day the U.S. was to produce revised data on nonfarm productivity.
NZD/USD hit 0.7929 during late Asian trade, the daily low; the pair subsequently consolidated at 0.7934, edging down 0.13%.
The pair was likely to find support at 0.7887, the low of July 26 and resistance at 0.7986, the high of July 16.
Investors remained cautious ahead of the ECB’s monetary policy meeting on Thursday, amid expectations that the bank will give further the details on a long awaited bond-buying program designed to help ease funding pressures for indebted euro zone countries.
ECB President Mario Draghi told European lawmakers on Monday that purchases of short-term sovereign bonds to help debt-burdened countries like Spain and Italy would not breach European Union rules.
Market sentiment remained vulnerable however, amid growing fears that the central bank may disappoint.
Meanwhile, the greenback’s gains were limited after disappointing U.S.
manufacturing data on Tuesday added to speculation that the Federal Reserve may soon announce a fresh round of easing measures to shore up growth.
Elsewhere, the kiwi was higher against the Australian dollar with AUD/NZD shedding 0.20%, to hit 1.2843.
Also Wednesday, official data showed that Australia’s gross domestic product rose less-than-expected in the second quarter, rising 0.6% after a revised 1.4% increase the previous month.
Analysts had expected Australia’s GDP to rise 0.7% in the second quarter.
A separate report showed that an index of service sector activity for Australia ticked down to 42.4 in August from a reading of 46.5 the previous month.
Later in the day the U.S. was to produce revised data on nonfarm productivity.