Forex - NZD/USD edges higher, upside seen limited

Published 12/10/2012, 02:53 AM
Updated 12/10/2012, 02:55 AM
NZD/USD
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AUD/NZD
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Investing.com - The New Zealand dollar edged up against its U.S. counterpart on Monday, trading close to a two-month high, but gains were expected to be limited as concerns over political turmoil in Italy and disappointing economic data from China weighed.

NZD/USD hit 0.8340 during European morning trade, the daily high; the pair subsequently consolidated at 0.8335, adding 0.11%.

The pair was likely to find support at 0.8284, the low of December 6 and resistance at 0.8326, the high of September 28.

Investors remained cautious after Italian Prime Minister Mario Monti announced that he will resign as soon as he has passed a key budget law, as members of former Prime Minister Silvio Berlusconi’s party withdrew their support for the government.

Markets were also jittery after data showed that China's trade surplus narrowed more-than-expected in November, sparking fresh concerns over the perspective for growth in the world's second largest economy.

China is New Zealand's biggest export partner.

Elsewhere, the kiwi was higher against the AUD/NZD slipping 0.17% to hit 1.2578.

Also Monday, official data showed that home loans in Australia rose far less-than-expected in October, ticking up 0.1% after a 1.1% increase the previous month.

Analysts had expected home loans to rise 3% in October.


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