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Forex - NZD/USD falls on Bernanke testimony

Published 07/18/2013, 03:01 AM
Updated 07/18/2013, 03:07 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 Thursday, as investors took in Federal Reserve Chairman Ben Bernanke's comments during testimony before the Financial Services Committee in Congress on Wednesday.

NZD/USD hit 0.7859 during late Asian trade, the session low; the pair subsequently consolidated at 0.7862, shedding 0.54%.

The pair was likely to find support at 0.7800, the low of July 16 and resistance at 0.7969, the high of July 11.

Bernanke said on Wednesday that the central bank expects to start tapering bond purchases by the end of the year, but added that there was no “preset course.”

Bernanke said the bank’s bond purchase program could be tapered at a faster pace, slower pace or even temporarily increased depending on economic and financial developments.

Bernanke said the economic recovery was continuing at a moderate pace but reiterated that monetary policy will remain accommodative for the foreseeable future.

The kiwi was higher against the Australian dollar with AUD/NZD sliding 0.30%, to hit 1.1645.

Also Thursday, the National Australia Bank said its business confidence index fell to minus 1 in the second quarter, from a reading of 2 in the previous quarter.

Separately, the Conference Board said its leading index was flat in May, after a 0.3% rise the previous month.

Later in the day, the U.S. was to release the weekly government report on initial jobless claims and data on the Philly Fed manufacturing index.


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