Forex - NZD/USD edges lower on profit taking, Fed supports

Published 09/17/2012, 02:54 AM
Updated 09/17/2012, 02:55 AM
NZD/USD
-
EUR/NZD
-
Investing.com - The New Zealand dollar edged lower against its U.S. counterpart on Monday, but remained close to a six-month high as investors locked in profits after the Federal Reserve announced a long-awaited monetary easing plan to shore up U.S. growth.

NZD/USD hit 0.8274 during late Asian trade, the daily low; the pair subsequently consolidated at 0.8283, edging down 0.10%.

The pair was likely to find support at 0.8198, the low of September 13 and resistance at 0.8353, the high of September 14 and a six-month high.

The kiwi rallied after the Fed announced last week that it would buy USD40 billion of mortgage-backed securities every month and would keep buying them until the job market improves.

The bank also said it expects to keep short-term interest rates at record low levels through at least mid-2015, six months longer than previously anticipated.

Market sentiment also remained suppported after the European Central Bank unveiled its own bond purchasing program, dubbed Outright Monetary Transactions, and as Germany’s Constitutional Court allowed the euro zone’s permanent rescue fund to move forward.

In New Zealand, the Westpac Banking Corporation said earlier that its index of consumer sentiment rose to 102.5 in the thrid quarter, from a reading of 99.9 in the previous quarter.

Elsewhere, the kiwi was fractionally lower against the euro with EUR/NZD adding 0.09%, to hit 1.5847.

Later in the day, the U.S. was to publish an index of manufacturing activity in the New York area.


Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.