Forex - NZD/USD drops on disappointing balance of payments data

Published 06/19/2012, 10:15 PM
Updated 06/19/2012, 10:16 PM
NZD/USD
-
AUD/NZD
-
NZD/JPY
-
Investing.com - The New Zealand dollar fell against its U.S. counterpart on Wednesday on softer-than-expected balance of payments data.

NZD/USD hit 0.7954 in Asian trading on Wednesday, down 0.34% and up from a session low of 0.7947 and off from a high of 0.7984.

The pair sought to test support at 0.7947, the earlier low, and resistance at 0.7990, the high of June 19.

New Zealand reported a seasonally adjusted current account deficit of NZD2.8 billion in the March 2012 quarter, up NZD0.6 billion from the December 2011 quarter deficit, the New Zealand government reported.

For the year ended March 2012, the current account deficit hit 4.8% of GDP, compared with 3.7%  for the year ended March 2011.

The numbers, which were worse than expected, weakened the New Zealand currency against the greenback.

The dollar, meanwhile, was up against many major currencies amid bottom fishing after investors sold the currency ahead of Wednesday's Federal Reserve statement on monetary policy.

The New Zealand dollar, meanwhile, was down against the yen and down against its Australian counterpart, with NZD/JPY falling 0.55% to 62.67 and AUD/NZD up 0.22% at 1.2795.

Later Wednesday, the Federal Reserve will announce its decision on the direction of benchmark interest rates and economic projections.

The data is to be followed by a press conference with Fed Chairman Ben Bernanke to discuss the monetary policy decision.

The U.S. is also to release government data on crude oil stockpiles.









Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.