Forex - NZD/USD falls, U.S. data in focus

Published 06/04/2013, 02:56 AM
Updated 06/04/2013, 03:05 AM
NZD/USD
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AUD/NZD
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Investing.com - The New Zealand dollar fell against its U.S. counterpart on Tuesday, as the greenback regained ground after the release of downbeat U.S. manufacturing data on Monday.

NZD/USD hit 0.8037 during late Asian trade, the session low; the pair subsequently consolidated at 0.8023, declining 0.83%.

The pair was likely to find support at 0.7943, Monday's low and resistance at 0.8126, the high of May 30.

The greenback had weakened on Monday, after data showed that activity in the U.S. manufacturing sector contracted for the first time in six months in May.

The Institute for Supply Management said its index of purchasing managers fell to 49.0, the lowest level since June 2009 and below the 50 level that separates contraction from growth.

The weak data dampened expectations that the Federal Reserve will start to unwind its USD85 billion-a-month asset purchase program later this year.

The kiwi was fractionally lower against the Australian dollar with AUD/NZD edging up 0.08%, to hit 1.2080.

Also Tuesday, the Reserve Bank of Australia held its benchmark interest rate at a record low of 2.75%, in line with expectations.

In a statement, the central bank added that it still has room to cut interest rates further and that the Aussie remains high despite its recent downside trend.

Later in the day, the U.S. was to produce a report on the trade balance.


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