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Forex - NZD/USD edges higher but gains capped

Published 11/11/2013, 03:02 AM
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 Monday, but gains were capped as speculation the Federal Reserve could soon begin tapering its asset purchases lent support to the greenback.

NZD/USD hit 0.8288 during late Asian trade, the session high; the pair subsequently consolidated at 0.8273, rising 0.36%.

The pair was likely to find support at 0.8193, the low of October 30 and resistance at 0.8350, the high of November 8.

Data on Friday showed that the U.S. economy added 204,000 jobs in October, significantly higher than the 125,000 expected by economists. The unemployment rate ticked up to 7.3% from an almost five year low of 7.2% the previous month.

The upbeat data indicated that the U.S. economy shrugged off the impact of the government shutdown and added to expectations that the Fed may start winding down its USD85 billion-a-month asset purchase program as soon as next month.

The kiwi was also higher against the Australian dollar with AUD/NZD shedding 0.33%, to hit 1.1342.

Also Monday, official data showed that home loans in Australia rose 4.4% in September, exceeding expectations for a 4% increase, after a downwardly revised 4% decline the previous month.


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