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Forex - NZD/USD drops on RBNZ remarks

Published 05/07/2014, 02:55 AM
Kiwi declines vs. greenback, RBNZ weighs
NZD/USD
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EUR/NZD
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Investing.com - The New Zealand dollar dropped against its U.S. counterpart on Wednesday, after the release of relativelu positive employment data from New Zealand, as comments by the nation's central bank weighed.

NZD/USD hit 0.8682 during late Asian trade, the session low; the pair subsequently consolidated at 0.8691, declining 0.56%.

The pair was likely to find support at 0.8594, the low of May 2 and resistance at 0.8780, Tuesday's high and a 33-month high.

Official data earlier showed that the number of employed people in New Zealand rose by 0.9% in the first quarter, beating expectations for a 0.6% increase, after a 1.1% gain in the three months to December.

The report also showed that New Zealand's unemployment rate remained unchanged at 6.0% in the last quarter, disappointing expectations for a downtick to 5.9%.

Meanwhile, Reserve Bank of New Zealand Chairman Graeme Wheeler warned against the kiwi's current strength, saying that "it would become more opportune for the Reserve Bank to intervene in the currency market to sell New Zealand dollars", in the face of worsening fundamentals.

The kiwi was lower against the euro, with EUR/NZD climbing 0.52% to 1.6016.

Later in the day, Federal Reserve Chair Janet Yellen was to testify before the Joint Economic Committee of Congress, in Washington.

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