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Forex - Kiwi drops against stronger greenback after Fed statement

Published 07/30/2015, 02:45 AM
Kiwi loses ground vs. greenback on U.S. rate hike hopes
NZD/USD
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AUD/NZD
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Investing.com - The New Zealand dollar dropped against its U.S. counterpart on Thursday, as demand for the greenback strengthened broadly after the Federal Reserve left the door open for a rate hike as soon as September.

NZD/USD hit 0.6621 during late Asian trade, the pair's lowest since Tuesday; the pair subsequently consolidated at 0.6624, sliding 0.62%.

The pair was likely to find support at 0.6556, the low of July 27 and resistance at 0.6722, Wednesday's high.

The greenback was boosted after the Fed gave no clear indication of the timing of the next rate hike, but left itself room to act as early as September, citing continued "solid" gains in the job market.

At the conclusion of the Fed's two-day policy meeting on Wednesday, the central bank said policy makers voted unanimously to keep U.S. interest rates unchanged and reiterated their dependency on data to determine plans for tightening monetary policy.

The kiwi was also lower against the Australian dollar, with AUD/NZD advancing 0.75% to 1.1023.

The Australian Bureau of Statistics reported on Thursday that building approvals dropped 8.2% in June, compared to expectations for a 0.8% downtick. Building approvals increased by 2.3% in May, whose figure was revised from a previously estimated 2.4% gain.

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