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Forex - NZD/USD almost unchanged near 32-month highs

Published 04/10/2014, 02:49 AM
Kiwi hovers near 32-month highs vs. greenback after N.Z. data
NZD/USD
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EUR/NZD
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Investing.com - The New Zealand dollar was trading near 32-month highs against its U.S. counterpart on Thursday, after the release of upbeat New Zealand manufacturing data, while the minutes of the Federal Reserve's latest policy meeting pressured the greenback lower.

NZD/USD hit 0.8746 during late Asian trade, the pair's highest since since August 2011; the pair subsequently consolidated at 0.8730, rising 0.18%.

The pair was likely to find support at 0.8646, Wednesday's low and resistance at 0.8842.

Data earlier showed that the New Zealand business manufacturing index rose to 58.4 in March, from a reading of 56.5 in February, whose figure was revised up from a previously estimated 56.2.

In addition, data showed that China's trade balance swung into a surplus of $7.7 billion last month, from a deficit of $23 billion in February. Analysts had expected the trade deficit to narrow to $0.9 billion in March.

China is New Zealand's second biggest export partner.

Meanwhile, the greenback came under pressure after the Fed's March meeting minutes released on Wednesday showed that officials discussed whether to make a more explicit commitment to keeping short-term interest rates at record lows until inflation moves higher, but instead decided to wait.

The minutes also indicated growing concerns among officials over persistently low inflation.

Last month the U.S. central bank reduced the monthly pace of purchases by $10 billion, to $55 billion, and said it is likely to continue paring the program in "further measured steps."

The kiwi was also higher against the euro, with EUR/NZD slipping 0.29% to 1.5850.

Later in the day, the U.S. Labor Department was to release its weekly report on initial jobless claims.

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