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Forex - Kiwi re-approaches 2-1/2 month trough vs. stronger greenback

Published 05/28/2015, 02:56 AM
Kiwi slips lower vs. broadly stronger greenback
NZD/USD
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AUD/NZD
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Investing.com - The New Zealand dollar slipped lower against its U.S. counterpart on Thursday, re-approaching a two-and-a-half month trough as demand for the greenback remained broadly supported by expectations for a U.S. rate hike in the coming months.

NZD/USD hit 0.7230 during late Asian trade, the session low; the pair subsequently consolidated at 0.7262, edging down 0.13%.

The pair was likely to find support at 0.7182, the low of March 11 and resistance at 0.7322, the high of May 26.

Demand for the greenback continued to be underpinned after data on Tuesday showed that U.S. business investment plans increased, consumer confidence improved and house prices extended gains.

The upbeat data supported the view that the Federal Reserve could start to raise interest rates later in the year if the economy continues to improve as expected.

The kiwi was higher against the Australian dollar, with AUD/NZD slipping 0.19% to 1.0613.

Later in the day, the U.S. was to release the weekly report on unemployment claims, as well as data on pending home sales.

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