Forex - NZD/USD higher, but gains capped

Published 08/14/2012, 02:46 AM
NZD/USD
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EUR/NZD
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Investing.com - The New Zealand dollar was higher against its U.S. counterpart on Tuesday, as market sentiment remained mildly supported by hopes for fresh easing steps by world central banks, but gains were limited ahead of key euro zone and U.S. economic reports.

NZD/USD hit 0.8113 during late Asian trade, the daily high; the pair subsequently consolidated at 0.8105, adding 0.20%.

The pair was likely to find support at 0.8022, the low of July 4 and resistance at 0.8162, the high of August 8.

Market sentiment found support amid sustained expectations for fresh action by the European Central Bank to shore up growth, while recent weak data out of China and Japan added to speculation that other central banks may turn to fresh easing measures as well.

Meanwhile, investors were eyeing the release of euro zone growth data later in the day, after a report earlier showed that Germany’s economy grew unexpectedly in the second quarter.

German gross domestic product expanded by 0.3% in the three months to June, beating expectations for a 0.2% expansion and following an expansion of 0.5% in the first quarter.

In New Zealand, official data showed that retail sales rose far more than expected in the second quarter, climbing 1.5% after a 0.6% drop the previous quarter.

Analysts had expected retail sales to rise 0.7% in the second quarter.

Core retail sales, which exclude automobiles and gas stations, rose 0.9% in the three months to June, less than the expected 1% increase and following a 1.4% drop in the first quarter.

The kiwi was fractionally lower against the euro with EUR/NZD inching up 0.08%, to hit 1.5258.

Later in the day, the U.S. was to publish official data on retail sales and producer price inflation, followed by data on business inventories.


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