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Forex - NZD/USD higher despite Fed concerns

Published 07/02/2013, 09:58 PM
Updated 07/02/2013, 09:59 PM
NZD/USD
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AUD/NZD
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NZD/JPY
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Investing.com - The New Zealand dollar traded higher against its U.S. counterpart during Wednesday’s session as traders did some bargain hunting with the kiwi despite lingering concerns about what could happen next with the Federal Reserve’s monetary easing program.

In Asian trading Wednesday, NZD/USD rose 0.19% to 0.7768. The pair was likely to find support at 0.7728, Monday's low and resistance at 0.7853, the high of June 27.

Two U.S. data points could be the latest signs that the Fed has room to start tapering its USD85 billion-a-month bond-buying program.

In U.S. economic news out Tuesday, the Commerce Department said U.S. factory orders rose 2.1% in May following a revised 1.3% gain in April. Economists expected a May increase of 2%.

Real estate data provider CoreLogic said U.S. home prices surged 12.2% in May. Of the 100 largest U.S. metro areas, home prices advanced in all three. Prices rose in 48 of 50 states.

Traders will now turn their attention to the ADP private sector payroll report due out during Wednesday’s U.S. session. That report only tracks private sector hiring, but is widely followed, particularly trades believe it provides insight into what to expect the monthly non-farm payroll number.

The U.S. Labor Department is scheduled to release the June jobs data Friday before the open of U.S. markets.

Elsewhere, AUD/NZD inched up 0.03% to 1.1807 after the Australian Bureau of Statistics said that Australian retail sales rose 0.1% last month after falling 0.1% in May. Analysts expected a June increase of 0.3%. NZD/JPY was steady at 78.02.


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