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Forex - NZD/USD edges lower, focus on Italy

Published 02/25/2013, 03:03 AM
Updated 02/25/2013, 03:04 AM
NZD/USD
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AUD/NZD
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Investing.com - The New Zealand dollar edged lower against its U.S. counterpart on Monday, as risk sentiment weakened after downbeat Chinese data, while markets eyed parliamentary elections in Italy.

NZD/USD hit 0.8353 during late Asian trade, the session low; the pair subsequently consolidated at 0.8371, easing 0.08%.

The pair was likely to find support at 0.8314, the low of February 21 and resistance at 0.8398, the high of February 22.

Data showed that China’s HSBC Flash Purchasing Managers Index, the earliest indicator of the country's industrial activity, fell to a four-month low of 50.4 in January from a final reading of 52.3 in December.

China is New Zealand's second biggest export partner.

Meanwhile, investors remained wary ahead of the results of Italy’s election, amid concerns that a hung parliament could hamper efforts to implement further economic reforms and lead to instability in the euro zone’s third largest economy.

The results of the election were expected to be known on Tuesday, but exit polls were due to be published on Monday afternoon.

The kiwi was higher against the Australian dollar with AUD/NZD falling 0.26%, to hit 1.2285.


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