Forex - NZD/USD edges higher but upside limited

Published 11/19/2012, 03:13 AM
NZD/USD
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EUR/NZD
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Investing.com - The New Zealand dollar edged higher against the U.S. dollar on Monday, as hopes for a resolution to the U.S. fiscal cliff supported sentiment, but gains were limited amid concerns over the outlook for the domestic economy, while worries over the euro zone also weighed.

NZD/USD hit 0.8148 during late Asian trade, the pair’s highest since November 14; the pair subsequently consolidated at 0.8134, edging up 0.12%.

The pair was likely to find support at 0.8078, the low of November 15 and resistance at 0.8185, the high of November 12.

Market sentiment was bolstered after U.S. Congressional leaders said talks with President Barack Obama on Friday to avert the fiscal cliff, a combination of automatic tax increases and spending cuts due to come into effect from January, were "constructive."

But the kiwi’s gains were limited as the outlook for the domestic economy remained clouded after recent weak data on retail sales and employment.

Investors were cautious ahead of a meeting of the euro group of euro zone finance ministers on Tuesday to discuss unlocking Greece’s next tranche of financial aid.

The kiwi was little changed against the euro, with EUR/NZD dipping 0.01% to 1.5678.

Later Monday, the U.S. was to release an industry report on existing home sales.



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