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Forex - NZD/USD almost unchanged in cautious trade

Published 04/07/2015, 02:56 AM
Kiwi holds steady against greenback, U.S. data still weighs
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Investing.com - The New Zealand dollar was almost unchanged against its U.S. counterpart on Tuesday, as sentiment on the greenback remained fragile after Friday's disappointing U.S. jobs report.

NZD/USD hit 0.7516 during late Asian trade, the session low; the pair subsequently consolidated at 0.7539.

The pair was likely to find support at 0.7422, the low of April 2 and resistance at 0.7623, Monday's high.

The greenback remained under pressure after the Labor Department reported Friday that the U.S. economy added 126,000 new jobs in March, less than half of February’s gain and the smallest increase since December 2013.

The report added to doubts over the strength of the economic recovery, prompting investors to push back expectations for a rate hike by the Federal Reserve to the end of the year from midyear.

The kiwi was sharply lower against the Australian dollar, with AUD/NZD rallying 1.32% to 1.0199.

The Aussie strengthened broadly after the Australian Bureau of Statistics reported that retail sales rose 0.7% in February, exceeding expectations for a 0.4% gain. January's figure was revised to a 0.5% increase from a previously estimated 0.4% uptick.

Data also showed that job advertisements in Australia declined by 1.4% last month after a 0.7% rise in February, whose figure was revised from a previously estimated 0.9% gain.

Separately, the Reserve Bank of Australia held its benchmark interest rate at 2.25% on Tuesday, in a widely expected decision.

RBA Governor Glenn Stevens reiterated that "further easing may be appropriate over the period ahead, to foster sustainable growth in demand and inflation consistent with the target."

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