Forex - NZD/USD higher on euro zone optimism

Published 12/05/2012, 03:04 AM
Updated 12/05/2012, 03:06 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 Wednesday, as market sentiment remained supported by signs of progress in handling the sovereign debt crisis in the euro zone.

NZD/USD hit 0.8256 during European morning trade, the daily high; the pair subsequently consolidated at 0.8251, adding 0.16%.

The pair was likely to find support at 0.8202, Tuesday's low and resistance at 0.8292, the high of November 16.

Sentiment remained supported after Greece launched a scheme to buy back debt from private investors on Monday, as part of an agreement to reduce its debt load and unlock a new bailout package worth EUR44 billion.

In addition, Spanish and Italian bond yields turned lower after Spain formally requested aid to recapitalize its banks.

Meanwhile, investors continued to watch negotiations between Democrats and Republicans to avoid the U.S. fiscal cliff, a set of spending cuts and tax increases due to come into effect on January 1 if lawmakers cannot reach an agreement on reducing the budget deficit.

The kiwi was higher against the Australian dollar with AUD/NZD slipping 0.17%, to hit 1.2688.

Also Wednesday, official data showed that Australia's gross domestic product rose less-than-expected in the third quarter, ticking up 0.5% after a 0.6% increase in the previous quarter.

Analysts had expected the GDP to rise 0.6% in the last quarter.

Later in the day, the U.S. was to release a report on ADP nonfarm payrolls, as well as official data on factory orders and crude oil stockpiles. In addition, the Institute of Supply Management was to produce a report on service sector activity.



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