Forex - NZD/USD almost unchanged in cautious trade

Published 04/03/2013, 02:59 AM
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 Wednesday, as renewed concerns over the handling of the debt crisis in the euro continued to weigh on market sentiment.

NZD/USD hit 0.8398 during late Asian trade, the session low; the pair subsequently consolidated at 0.8416, easing 0.02%.

The pair was likely to find support at 0.8378, Tuesday's low and resistance at 0.8445, Tuesday's high.

The kiwi found some support after China's HSBC’s services purchasing managers’ index rose to a six-month high of 54.3 in March, while the official version of the services PMI rose to 55.6 in March from 54.5 in February.

China is New Zealand's second biggest export partner.

But markets were jittery after data on Tuesday showed that the euro zone’s manufacturing purchasing managers’ index fell to 46.8 in March, from a final reading of 47.9 the previous month, still substantially below the 50 mark that separates growth from contraction.

The kiwi was also lower against the Australian dollar with AUD/NZD adding 0.17%, to hit 1.2433.

Also Wednesday, official data showed that Australia's trade deficit narrowed more-than-expected in February, hitting AUD0.18 billion from a deficit of AUD1.22 billion the previous month. Analysts had expected the trade deficit to narrow to AUD1 billion in February.

A separate report showed that new home sales in Australia fell 5.3% in February, after a 4.2% increase the previous month.

Later in the day, the U.S. was to release the ADP nonfarm payrolls report, while the Institute of Supply Management was release a report on U.S. service sector activity.


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