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Forex - NZD/USD higher, but remains under pressure

Published 07/01/2013, 03:01 AM
Updated 07/01/2013, 03:04 AM
NZD/USD
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AUD/NZD
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Investing.com - The New Zealand dollar was higher against its U.S. counterpart on Monday, but still remained under pressure after the release of mixed Chinese manufacturing data and amid expectations for the Federal Reserve to scale back its stimulus program before the year end.

NZD/USD hit 0.7783 during late Asian trade, the session high; the pair subsequently consolidated at 0.7774, advancing 0.41%.

The pair was likely to find support at 0.7708, the low of June 28 and resistance at 0.7853, the high of June 27.

China’s official manufacturing purchasing managers’ index came in at 50.1 in June, above expectations for 50.0, following a reading of 50.8 in May.

Separately, China’s HSBC manufacturing PMI fell to a nine-month low of 48.2 in June, down from a preliminary reading of 48.3 and further below the 50 level that separates contraction form expansion.

China is New Zealand's second biggest export partner.

Meanwhile, the greenback remained supported by expectations that the Fed will soon start tapering its USD85 billion-a-month bond buying program. Investors were awaiting Friday’s U.S. nonfarm payrolls data, with good data set to bolster the dollar further.

The kiwi was lower against the Australian dollar with AUD/NZD adding 0.21%, to hit 1.1832.

Later in the day, the Institute of Supply Management was to produce a report on manufacturing activity.


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