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Forex - NZD/USD drops in risk-off trade

Published 08/05/2013, 03:03 AM
NZD/USD
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AUD/NZD
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Investing.com - The New Zealand dollar dropped against its U.S. counterpart on Monday, as Friday's U.S. employment report lowered expectations for the Federal Reserve to soon begin to scale back its stimulus program.

NZD/USD hit 0.7737 during late Asian trade, the pair's lowest since July 15; the pair subsequently consolidated at 0.7811, retreating 0.33%.

The pair was likely to find support at 0.7732, the low of July 15 and resistance at 0.7982, the high of August 1.

Official data on Friday showed that the U.S. economy added 162,000 jobs in July, less than the 184,000 increase forecast by economists. June's figure was revised down to 188,000 from a previously reported 195,000.

The unemployment rate ticked down to 7.4% from 7.6% in June, as more people left the labor force.

The kiwi was also hit by reports that New Zealand dairy exporter Fonterra found botulism bacteria in some of its products.

New Zealand Trade Minister Tim Groser said on Sunday that China has halted all milk powder imports from New Zealand and Australia following the news.

The kiwi was lower against the Australian dollar with AUD/NZD gaining 0.39%, to hit 1.1404.

Later in the day, the Institute for Supply Management was to release its nonmanufacturing index.


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