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Forex - NZD/USD falls on disappointing New Zealand data

Published 10/16/2012, 04:06 AM
Updated 10/16/2012, 04:07 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 Tuesday, after disappointing consumer price inflation data from New Zealand, while investors continued to focus on developments in the euro zone.

NZD/USD hit 0.8139 during European morning trade, the daily low; the pair subsequently consolidated at 0.8158, shedding 0.34%.

The pair was likely to find support at 0.8120, the low of August 23 and resistance at 0.8210, the high of October 12.

Official data earlier showed that consumer price inflation in New Zealand rose less-than-expected in the third quarter, ticking up 0.03% after a 0.03% increase in the previous quarter.

Analysts had expected consumer price inflation to rise 0.6% in the third quarter.

Meanwhile, investors continued to hope that Spain will formally request a bailout in the coming weeks and activate a bond buying program by the European Central Bank aimed at lowering borrowing costs in the peripheral euro zone.

Elsewhere, Greek government officials indicated Monday that an agreement with international creditors on deficit reductions is unlikely to be reached before Thursday's European Union summit.

The kiwi was lower against the Australian dollar with AUD/NZD climbing 0.61%, to hit 1.2599.

Also Tuesday, the minutes of the Reserve Bank of Australia's most recent policy meeting showed that the central bank saw scope to cut borrowing costs, as the slowing global economy threatened to weaken Asia's growth and cool the nation's mining boom.

On October 2, the RBA unexpectedly cut the benchmark interest rate to 3.25% from 3.50%.

Later in the day, the U.S. was to release government data on consumer price inflation and industrial production.


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