Forex - NZD/USD declines after N.Z. business confidence, Fed

Published 10/31/2013, 03:59 AM
NZD/USD
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AUD/NZD
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Investing.com - The New Zealand dollar declined against its U.S. counterpart on Thursday, weighed by disappointing business confidence data out of New Zealand, while the Federal Reserve's monthly policy statement on Wednesday lent some support to the greenback.

NZD/USD hit 0.8231 during late Asian trade, the session low; the pair subsequently consolidated at 0.8244, shedding 0.29%.

The pair was likely to find support at 0.8159, the low of September 17 and resistance at 0.8338, the high of October 25.

Data showed that the ANZ business confidence index for New Zealand ticked down to 53.2 in October, from a reading of 54.1 the previous month.

In the U.S., the Fed left its USD85 billion-a-month asset purchase program in place and gave no clear indication whether it would start scaling back stimulus at the December meeting or continue it into the start of 2014.

"The housing sector has slowed somewhat in recent months," the Fed statement said. However, Fed officials stuck to the view that the economy is expanding "at a moderate pace" and said downside risks were diminishing.

The kiwi was lower against the Australian dollar with AUD/NZD gaining 0.37%, to hit 1.1515.

Also Thursday, official data showed that building approvals in Australia climbed 14.4% in September, beating expectations for a 2.7% increase, after an upwardly revised 1.6% decline the previous month.

A separate report showed that import prices in Australia rose 6.1% in the third quarter, more than the expected 4.0% gain, after a 0.3% fall in the the three months to June.

Later in the day, the U.S. was to release data on initial jobless claims and a report on manufacturing activity in the Chicago region.


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