Forex - NZD/USD edges higher, eyes on ECB

Published 10/04/2012, 04:24 AM
NZD/USD
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AUD/NZD
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Investing.com - The New Zealand dollar was higher against its U.S. counterpart on Thursday, as sentiment remained supported by Wednesday's strong U.S. economic reports, while markets awaited comments by European Central Bank President Mario Draghi later in the day.

NZD/USD hit 0.8220 during European morning trade, the daily high; the pair subsequently consolidated at 0.8204, adding 0.12%.

The pair was likely to find support at 0.8171, the low of September 12 and resistance at 0.8256, the high of Septmber 26.

Sentiment remained supported after upbeat U.S. data on Wednesday eased concerns over the strength of the country's economic recovery.

The Institute of Supply Management said its non-manufacturing purchasing manager's index rose to 55.1 in September from a reading of 53.7 in August, while payroll processing firm ADP said non-farm private employment rose by a seasonally adjusted 162,000 in September, surpassing expectations for an increase of 143,000.

Investor confidence had weakened earlier, after weak service sector data out of the euro zone and China added to concerns over a global economic slowdown.

Elsewhere, the kiwi was steady against the Australian dollar with AUD/NZD easing 0.06%, to hit 1.2454.

Also Thursday, official data showed earlier that building approvals climbed more-than-expected in August, rising 6.5% after a 21.2% drop the previous month.

Analysts had expected building approvals to advance 4.7% in August.

A separate report showed that retail sales rose by 0.2% in August, less than the expected 0.4% increase and following a 0.8% decline the previous month.

Later in the day, the ECB was to announce its benchmark interest rate, followed by a press conference with bank head Mario Draghi.

The U.S. was to release weekly government data on unemployment claims, as well as official data on factory orders, while the Federal Reserve was to produce the minutes of its September policy meeting.


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