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Forex - NZD/USD edges higher but gains capped by Greece worries

Published 02/11/2015, 03:02 AM
Kiwi gains some ground vs. dollar but upside limited
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 as concerns over Greece's future in the euro zone continued to dominate market attention.

NZD/USD hit 0.7447 during early European trade, the session high; the pair subsequently consolidated at 0.7418, adding 0.26%.

The pair was likely to find support at 0.7332, the low of February 6 and resistance at 0.7454, the high of February 4.

Investors continued to focus on developments in Greece following reports the European Commission could propose a six-month extension to Greece’s existing bailout program at an emergency meeting of the euro group of finance ministers, due to take place later in the day.

Athens is expected to ask for a bridge loan to cover its funding needs until September, and to also propose new economic reforms to replace some of the harshest austerity conditions attached to its bailout.

The kiwi was higher against the Australian dollar, with AUD/NZD falling 0.24% to 1.0474.

Also Wednesday, the Westpac Banking Corporation reported that Australian consumer sentiment rose 8.0% this month, after an increase of 2.4% in January.

A separate report showed that home loans in Australia climbed 2.7% in December, beating expectations for a 2.0% rise. November's figure was revised to a 0.4% downtick from a previously estimated 0.7% fall.

Later in the day, New Zealand was to release manufacturing activity data.

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