Forex - NZD/USD edges lower on E.Z. debt concerns

Published 11/30/2011, 03:05 AM
NZD/USD
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EUR/NZD
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Investing.com - The New Zealand dollar edged lower against its U.S. counterpart on Wednesday, retreating from a nine-day high as recent efforts to tackle the euro zone’s debt crisis did not manage to entirely reassure markets.

NZD/USD hit 0.7582 during late Asian trade, the daily low; the pair subsequently consolidated at 0.7592, declining 0.23%.

The pair was likely to find support at 0.7478, the low of November 28 and
resistance at 0.7722, the high of November 16.

On Tuesday, euro zone finance ministers agreed to a plan to guarantee up to 30% of new bond issues from troubled governments.

They also agreed to develop investment vehicles that would boost the euro zone’s bailout fund, the European Financial Stability Facility’s ability to intervene in primary and secondary bond markets.

The finance ministers also approved the latest tranches of aid to Greece and Ireland and presented new Italian Prime Minister Mario Monti with a report outlining measures the country should take to reduce debt and boost economic growth.

Earlier Wednesday, official data showed that building consents in New Zealand climbed 11.2% in October, after a 17.2% decline the previous month.

September’s figure had been revised down from minus 17.1%.

Meanwhile, the kiwi was up against the euro with EUR/NZD inching down 0.04%, to hit 1.7488.

Later in the day, the U.S. was to release a closely watched report on non-farm payrolls compiled by payroll processing firm ADP, as well as data on manufacturing activity in the Chicago area and pending home sales.

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