Forex - NZD/USD higher, gains capped by Greece uncertainty

Published 11/14/2012, 03:01 AM
Updated 11/14/2012, 03:02 AM
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AUD/NZD
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Investing.com - The New Zealand dollar was higher against its U.S. counterpart on Wednesday, but investors remained cautious amid ongoing uncertainty over whether Greece will soon receive another round of financial aid.

NZD/USD hit 0.8174 during European morning trade, the daily high; the pair subsequently consolidated at 0.8172, rising 0.16%.

The pair was likely to find support at 0.8124, the low of November 9 and resistance at 0.8212, the high of October 24.

Sentiment found some support after German newspaper Bild reported on Tuesday that Greece is to receive EUR44 billion of financial aid in one payment, citing German government sources.

But investor confidence remained under pressure amid ongoing divisions between officials from the International Monetary Fund and Europe on how best to reduce Greece’s debt to manageable levels.

A decision on unlocking the country’s next tranche of aid, worth EUR31.5 billion, has been postponed until 20 November.

In New Zealand, official data showed that core retail sales, which exclude automobiles and gas stations, fell unexpectedly in the third quarter, ticking down 0.3% after a 0.9% rise in the previous quarter.

Analysts had expected core retail sales to rise by 0.6% in the last quarter.

Retail sales fell by 0.4% in the third quarter, disappointing expectations for a 0.5% rise, following a 1.3% increase in the second quarter.

The kiwi was almost unchanged against the Australian dollar with AUD/NZD easing up 0.02%, to hit 1.2789.

Also Wednesday, the Westpac Banking Corporation said earlier in a report that its index of consumer sentiment for Australia rose by 5.2% in November, after a 1% increase the previous month.

Later in the day, the U.S. was to produce government data on retail sales, producer price inflation and business inventories. In addition, the Federal Reserve was to publish the minutes of its most recent policy-setting meeting.


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