Forex - NZD/USD falls to 10-week low on risk aversion

Published 12/16/2010, 04:10 AM
NZD/USD
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EUR/NZD
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Investing.com – New Zealand’s dollar was down against its U.S. counterpart on Thursday, sliding to a 10-week low after weak domestic data on consumer sentiment and business confidence.

NZD/USD hit 0.7358 during European morning trade, the pair’s lowest since October 5; the pair subsequently consolidated at 0.7371, shedding 0.31%.

The pair was likely to find support at 0.7304, the low of September 30 and resistance at 0.7521, Wednesday’s high.

Earlier in the day, the Westpac-McDermott Miller Consumer Confidence Index indicated consumer sentiment in New Zealand was at its lowest level in 18 months in the third quarter while the National Bank of New Zealand's Business Outlook survey also showed that confidence declined slightly in December compared with November.

The weak data reinforced expectations that the Reserve Bank of New Zealand will keep interest rates on hold into 2011.

The kiwi was also down against the euro, with EUR/NZD climbing 0.53% to hit 1.7957.

Later Thursday, the U.S. was to publish a key weekly report on initial jobless claims, as well as data on building permits, housing starts and manufacturing activity in Philadelphia.

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