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Forex - NZD/USD edges lower despite strong New Zealand data

Published 07/31/2013, 02:48 AM
NZD/USD
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EUR/NZD
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Investing - The New Zealand dollar edged lower against its U.S. counterpart on Wednesday, despite strong New Zealand business confidence data, as markets were jittery ahead of the Federal Reserve's upcoming policy statement.

NZD/USD hit 0.7950 during late Asian trade, the pair's lowest since July 24; the pair subsequently consolidated at 0.7973, slipping 0.16%.

The pair was likely to find support at 0.7906, the low of July 24 and resistance at 0.8099, the high of July 29.

Data showed that the ANZ business confidence index rose to 52.8 in July, from a reading of 50.1 the previous month, hitting a 14-year high.

But investors remained cautious ahead of the Fed's policy statement, as recent U.S. economic reports fuelled uncertainty on when the central bank could begin to taper its bond-buying program.

On Tuesday, the Conference Board said its index of consumer confidence fell to 80.3 in July, from a reading of 82.1 the previous month, compared to expectations for a decline to 81.4.

A separate report showed that the Standard & Poor's/Case-Shiller Composite-20 house price index rose to an annualized rate of 12.2% in May, from 12.1% the previous month, compared to expectations for an increase to 12.4%.

The kiwi was steady against the euro with EUR/NZD dipping 0.05%, to hit 1.6597.

Later in the day, the U.S. was to produce economic growth data, as well as reports on non-farm employment change and manufacturing activity in Chicago.


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