Forex - NZD/USD higher amid euro zone jitters

Published 01/18/2012, 02:58 AM
NZD/USD
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EUR/NZD
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Investing.com - The New Zealand dollar moved higher against its U.S. counterpart on Wednesday, but gains were limited as investors were cautious ahead of a series of debt auctions in the euro zone and new Greece bailout talks.

NZD/USD hit 0.8038 during late Asian trade, the pair’s highest since November 1; the pair subsequently consolidated at 0.8034, gaining 0.39%.

The pair was likely to find support at 0.7929, the low of January 17 and resistance at 0.8108, the high of October 24.

Portugal was preparing to sell up to EUR2.5 billion of treasury bills later Wednesday in its biggest debt auction since last year's bailout.

Meanwhile, Germany was set to raise around EUR4 billion euros in the bond market, followed by Spain and France on Thursday.

Greece's debt swap talks with international creditors were also set to resume on Wednesday, as the country needs to reach a deal in order to secure a new bailout and avoid a default.

Earlier Wednesday, a report by the real Estate Institute of New Zealand showed that house price inflation declined 0.1% in December after a 1.1% rise the previous month.

Sentiment was boosted earlier amid expectations that China will loosen its monetary policy to boost growth, after data showed that the country’s economy grew at the slowest pace in more than two years and expanded less than 9% for the first time since mid-2009.

Elsewhere, the kiwi was fractionally lower against the euro with EUR/NZD edging up 0.08%, to hit 1.5926.

Later in the day, the U.S. was to release official data on producer price inflation and industrial production.

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