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

Published 05/24/2012, 02:55 AM
NZD/USD
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EUR/NZD
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Investing.com - The New Zealand dollar rose against the its U.S. counterpart on Thursday, but remained close to a six-month low as the prospect of a Greek exit from the euro zone continued to weigh on market sentiment.

NZD/USD hit 0.7529 during late Asian trade, the daily high; the pair subsequently consolidated at 0.7534, adding 0.45%.

The pair was likely to find support at 0.7456, Wednesday’s low and a six-month low and resistance at 0.7577, the high of December 14.

Sentiment remained under pressure after Wednesday’s informal summit of European Union leaders shed no new light on how the euro zone nations intend to tackle their debt crisis, including the threat of Greece's possible exit from the monetary union.

EU leaders did urge Greece to pursue austerity measures, however, and complete the reforms demanded under its bailout program. 

In New Zealand, official data showed that the country’s trade surplus widened less-than-expected in April, rising to NZD355 million from NZD186 million the previous month.

Analysts had expected the trade surplus to widen to NZD445 million in April.

Meanwhile, in its annual budget release, the New Zealand Treasury said that after the domestic recession, global financial crisis and Canterbury earthquakes the economy is building momentum and, despite sustained risks to the outlook, the recovery is expected to strengthen over the coming years.

Elsewhere, preliminary data showed that China’s manufacturing activity may shrink for a seventh consecutive month in May, adding to speculation that the government may implement fresh stimulus measures to support growth.

China is New Zealand’s second biggest export partner.

The kiwi was also higher against the euro with EUR/NZD shedding 0.42%, to hit 1.6705.

Later in the day, the U.S. was to release official data on core durable goods orders and unemployment claims, followed by a preliminary report on manufacturing activity.


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