Forex - NZD/USD edges lower, but remains supported

Published 10/18/2012, 04:03 AM
Updated 10/18/2012, 04:04 AM
NZD/USD
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AUD/NZD
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Investing.com - The New Zealand dollar edged lower against the U.S. dollar on Thursday, but remained supported as concerns over global economic growth eased while investors eyed a highly anticipated European summit, later in the day.

NZD/USD hit 0.8206 during European morning trade, the daily low; the pair subsequently consolidated at 0.8209, slipping 0.11%.

The pair was likely to find support at 0.8163, Wednesday's low and resistance at 0.8266, the high of October 5.

Market sentiment remained supported after official data showed that the Chinese economy expanded by 7.4% in the three months to October, matching economists' forecasts.

China is New Zealand's second biggest export partner.

The data came one day after a report showing that U.S. housing starts rose by 15% in September, the fastest pace since July 2008, adding to hopes that the U.S. economic recovery is gaining momentum.

Investors were also looking ahead to the start of a two-day European Union summit, although no major announcements on Spain or Greece were expected.

The kiwi was lower against the Australian dollar with AUD/NZD adding 0.11%, to hit 1.2643.

Also Thursday, the National Australia Bank said in a report that its index of business confidence remained unchanged at minus 2 in the third quarter.

Later in the day, the U.S. was to publish its weekly report in initial jobless claims, as well as data on manufacturing activity in Philadelphia.

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