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Forex - NZD/USD almost unchanged, Fed still in focus

Published 06/25/2013, 03:01 AM
Updated 06/25/2013, 03:05 AM
NZD/USD
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AUD/NZD
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Investing.com - The New Zealand dollar almost unchanged against its U.S. counterpart on Tuesday, as demand for the greenback remained supported by ongoing expectations for the Federal Reserve to scale down its stimulus program before the end of the year.

NZD/USD hit 0.7708 during late Asian trade, the session low; the pair subsequently consolidated at 0.7747, easing 0.06%.

The pair was likely to find support at 0.7684, Monday's low and a multi-month low and resistance at 0.7890, the high of June 20.

The greenback strengthened broadly after Fed Chairman Ben Bernanke said Wednesday the bank could begin slowing asset purchases by the end of 2013 and wind them down completely by the middle of 2014 if the economy continues to pick up.

However, Narayana Kocherlakota, president of the Federal Reserve Bank of Minneapolis, on Monday said the central bank was committed to continuing its bond purchase program until the U.S. unemployment rate falls further.

Meanwhile, investors remained cautious amid sustained concerns over financial stability in China, as Chinese equities posted their largest daily decline in nearly four years on Monday.

The kiwi was lower against the Australian dollar with AUD/NZD adding 0.16%, to hit 1.1945.

Later in the day, the U.S. was to release official data on durable goods orders and reports on home sales and consumer confidence.


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