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Forex - Kiwi rises against broadly weaker greenback

Published 02/17/2015, 02:59 AM
Kiwi gains ground vs. softer greenback
NZD/USD
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AUD/NZD
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Investing.com - The New Zealand dollar rose against its U.S. counterpart on Tuesday, as demand for the greenback remained broadly under pressure after a recent batch of weak U.S. economic reports.

NZD/USD hit 0.7528 during late Asian trade, the session high; the pair subsequently consolidated at -, adding 0.15%.

The pair was likely to find support at 0.7429, Monday's low and resistance at 0.7584, the high of January 22.

The greenback remained under pressure after data on Friday showed that the preliminary reading of the University of Michigan’s consumer sentiment index fell to 93.6, down from January’s final reading of 98.1. Economists had forecast an unchanged figure.

The report came a day after data showing that U.S. retail sales unexpectedly fell 0.8% last month after dropping 0.9% in December, indicating that consumer spending remained sluggish at the start of the year.

The kiwi was lower against the Australian dollar, with AUD/NZD up 0.17% at 1.0378.

Also Tuesday, in the minutes of the Reserve Bank of Australia's February policy meeting, the central bank said it cut rates due to the deteriorating economic outlook.

Economic growth is expected to pick up later than the RBA expected, while unemployment is set to peak higher than originally forecast.

The RBA surprised markets earlier in the month when it lowered its benchmark interest rate to a new record-low 2.25% from 2.50%.

Later in the day, the U.S. was to release data on manufacturing activity in New York State as well as a private sector survey of home builders.

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