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Forex - NZD/USD edges higher, but gains seen limited

Published 04/15/2015, 02:58 AM
Kiwi rises vs. greenback but gains capped by Chinese data
NZD/USD
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AUD/NZD
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Investing.com - The New Zealand dollar edged higher against its U.S. counterpart on Wednesday, but gains were expected to remain limited by downbeat Chinese economic growth and industrial production data and as the greenback regained strength.

NZD/USD hit 0.7541 during late Asian trade, the session high; the pair subsequently consolidated at 0.7538, adding 0.21%.

The pair was likely to find support at 0.7436, Tuesday's low and resistance at 0.7601, the high of April 10.

Data earlier showed that China's gross domestic product rose 1.3% in the first quarter, below expectations for 1.4% and down from a 1.5% growth rate in the three months to December.

A separate report showed that industrial production in China increased by an annualized rate of 5.6% in March, disappointing expectations for a 6.9% gain, after a 6.8% rise the previous month.

China is New Zealand's biggest export partner.

Meanwhile, the greenback regained some ground after the U.S. Commerce Department reported on Tuesday that retail sales rose 0.9% last month, disappointing expectations for a gain of 1.0%.

The kiwi was higher against the Australian dollar, with AUD/NZD dropping 0.52% to 1.0086.

Also Wednesday, the Westpac Banking Corporation said Australian consumer sentiment fell 3.2% this month, after a 1.2% decline in March.

Later in the day, the U.S. was to release reports on industrial production and manufacturing activity in New York state.

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