Forex - NZD/USD falls to 4-day low as risk appetite wanes

Published 02/10/2011, 03:50 AM
NZD/USD
-
EUR/NZD
-
Investing.com – The New Zealand dollar fell to a four day low against its U.S. counterpart on Thursday, after the U.S. central bank chief signaled the recovery in the U.S. economy was still fragile and amid concerns over further interest rate hikes in China.

NZD/USD hit 0.7671 during European morning trade, the pair’s lowest since February 4; the pair subsequently consolidated at 0.767, shedding 0.64%.

The pair was likely to find support at 0.7621, the low of January 25 and resistance at 0.7755, Wednesday’s high.

On Wednesday, Federal Reserve Chairman Ben Bernanke, testifying in Congress, gave no indication that the central bank would cut short its bond buying programme, or raise interest rates down the road.

Bernanke acknowledged renewed momentum in the economy, saying a drop in the jobless rate to 9% was grounds for optimism while adding that hiring was still anaemic.

Mreanwhile, on Thursday, an economist at a Chinese government think tank told the central bank-backed China Financial News that the country’s consumer price index in January and February was likely to exceed 5.0%.

The kiwi was also slightly lower against the euro, with EUR/NZD easing up 0.02% to hit 1.7779.

Later in the day, the U.S. was to release its key weekly report on initial jobless claims.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.