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Forex - Kiwi almost unchanged vs. greenback

Published 12/02/2014, 02:54 AM
Kiwi holds steady vs. greenback in cautious trade
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 Tuesday, after relatively positive U.S. factory data on Monday lent some support to the greenback.

NZD/USD hit 0.7891 during late Asian trade, the session high; the pair subsequently consolidated at 0.7864, inching up 0.01%.

The pair was likely to find support at 0.7774, the low of December 1 and resistance at 0.7929, the high of December 27.

On Monday, the U.S. Institute for Supply Management said its index of purchasing managers fell to 58.7 last month from a reading of 59.0 in October. Analysts had expected the manufacturing PMI to decline to 57.9 in November.

The kiwi was lower against the Australian dollar, with AUD/NZD adding 0.21% to 1.0819.

Also Tuesday, the Reserve Bank of Australia left its benchmark interest rate at a record-low 2.50%, in a widely expected move.

Commenting on the decision, RBA Governor Glenn Stevens said "the most prudent course is likely to be a period of stability in interest rates."

Separately, the Australian Bureau of Statistics reported that building approvals rose 11.4% in October, exceeding expectations for an increase of 5.2%. The change in building approvals for September was revised to a 11.2% drop from a previously estimated 11.0% decline.

Data also showed that Australia's current account deficit narrowed to A$12.5 billion in the third quarter from A$13.9 billion in the second quarter, whose figure was revised from a previously estimated deficit of A$13.7 billion.

Analysts had expected the current account deficit to narrow to A$13.5 billion.

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