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Forex - NZD/USD steady ahead of German bond auction

Published 01/04/2012, 03:12 AM
NZD/USD
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AUD/NZD
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Investing.com - The New Zealand dollar was almost unchanged against its U.S. counterpart on Wednesday, as renewed concerns over the euro zone’s debt crisis ahead of a German debt auction weighed on demand for riskier assets.

NZD/USD hit 0.7872 during late Asian trade, the daily low; the pair subsequently consolidated at 0.7895, inching up 0.01%.

The pair was likely to find support at 0.7805, the low of November 9 and resistance at 0.7965, the high of November 4.

Sentiment weakened as Germany was set to sell EUR5 billion of 10-year government bonds later in the day.

Investors were also focusing on a key meeting between French President Nicolas Sarkozy and German Chancellor Angela Merkel on January 9 to advance discussions on tighter fiscal integration in the European Union.

Elsewhere, in the minutes of its December policy setting meeting, the Federal Reserve said it will begin later this month to publish the predictions of its senior officials about their own decisions, hoping to increase its influence over economic activity.

The bank added that “current and prospective economic conditions could well warrant additional policy accommodation, but they believed that any additional actions would be more effective if accompanied by enhanced communication.”

Meanwhile, the kiwi was higher against the Australian dollar with AUD/NZD declining 0.09%, to hit 1.3130.

Later in the day, the U.S. was to release data on factory orders.


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