Forex - NZD/USD falls despite positive New Zealand data

Published 05/16/2013, 02:52 AM
Updated 05/16/2013, 02:55 AM
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Investing.com - The New Zealand dollar fell against its U.S. counterpart on Thursday, despite the release of positive New Zealand data, as concerns over the outlook for growth in the euro zone continued to weigh on market sentiment.

NZD/USD hit 0.8208 during late Asian trade, the session low; the pair subsequently consolidated at 0.8216, shedding 0.29%.

The pair was likely to find support at 0.8175, Wednesday's low and a two-month low and resistance at 0.8302, the high of May 14.

Data showed that the New Zealand business manufacuring index rose to 54.5 in April from a reading of 53.4 the previous month.

Separately, in its annual budget release, the New Zealand government projected a small budget surplus of NZD75 million in 2015, up from a previously forecast NZD66 million, as rebuilding earthquake-devastated Christchurch city bolsters economic growth and tax revenue.

Meanwhile, investors remained cautious after official data on Wednesday showed that the euro zone economy contracted by 0.2% in the first quarter, bringing the annualized rate of contraction to 0.9%.

Germany’s economy posted growth of 0.1%, below expectations for a 0.3% increase, while the French economy contracted by a larger than expected 0.2%.

The kiwi was lower against the euro with EUR/NZD adding 0.15%, to hit 1.5662.

Later in the day, the U.S. was to produce official data on building permits, housing starts, consumer inflation and initial jobless claims, as well as the Philly Fed manufacturing index.


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