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Forex - NZD/USD down as N.Z. growth may be slower than expected

Published 07/05/2010, 09:54 AM
NZD/USD
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AUD/NZD
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Investing.com – The New Zealand dollar fell against its U.S. counterpart on Monday, after the country's Treasury Department said that near-term economic growth in New Zealand may be slower than was predicted in May's budget.

NZD/USD hit 0.6855 during European afternoon trade; a 2-day low; the pair subsequently consolidated at 0.6866, shedding 0.32%.

The pair was likely to find support at 0.6794, the low of July 1, and resistance at 0.697, last Friday's high.

Earlier in the day, New Zealand's Treasury Department said in a statement that first-quarter growth was “relatively weak in private consumption and investment, but stronger in exports."

The statement continued "Our view as to the most likely path the economy takes remains consistent with budget forecasts; however, downside risks are significantly higher and near-term growth is likely to be a little weaker than forecast.”

The kiwi was also down against the Aussie, with AUD/NZD gaining 0.02% to hit 1.222.

Meanwhile, markets in the U.S. were closed for the Independence Day bank holiday and were due to re-open Tuesday.

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