Forex - NZD/USD higher but gains capped by growth worries

Published 04/18/2013, 02:54 AM
Updated 04/18/2013, 02:59 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 Thursday, but gains were limited as worries over the outlook for global economic growth continued to weigh on risk appetite.

NZD/USD hit 0.8469 during late Asian trade, the session high; the pair subsequently consolidated at 0.8457, gaining 0.21%.

The pair was likely to find support at 0.8414, the low of April 16 and resistance at 0.8496, Wednesday's high.

Sentiment was hit after the International Monetary Fund cut its forecast for global growth for 2013 and 2014 on Tuesday.

The IMF said continued monetary stimulus by the Federal Reserve and the Bank of Japan was expected to continue to support growth in the U.S. and Japan, while the euro zone still posed the greatest threat to a recovery in the global economy.

The kiwi was steady against the Australian dollar with AUD/NZD easing 0.06%, to hit 1.2193.

Also Thursday, the National Bank of Australia earlier said that its index of business confidence rose to 2 in the first quarter, from a reading of minus 5 in the previous quarter.

Later in the day, the U.S. was to release official data on initial jobless claims and the Philly Fed manufacturing index.


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