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Forex - NZD/USD hits 1-week low despite euro zone optimism

Published 01/28/2013, 03:03 AM
NZD/USD
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AUD/NZD
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Investing.com - The New Zealand dollar slipped to a one-week low against its U.S. counterpart on Monday, although market sentiment remained supported by signs of progress in the handling of the euro zone's financial crisis.

NZD/USD hit 0.8339 during late Asian trade, the pair's lowest since January 21; the pair subsequently consolidated at 0.8337, shedding 0.53%.

The pair was likely to find support at 0.8207, the low of January 7 and resistance at 0.8369, the high of January 21.

Sentiment found support on Friday after the European Central Bank said euro zone banks are to repay EUR137.2 billion in emergency loans this week, indicating that liquidity pressure in the bloc has eased.

Investor confidence was also boosted by a report showing that Germany’s Ifo index of business confidence improved to a seven-month high in January, adding to signs of a recovery in the euro zone’s largest economy.

Traders remained cautious ahead of U.S. data on fourth quarter growth and the Federal Reserve’s monetary policy statement on Wednesday and U.S. nonfarm payrolls data on Friday.

The kiwi was lower against the Australian dollar with AUD/NZD rising 0.28%, to hit 1.2476.

Later in the day, the U.S. was to release government data on durable goods orders, as well as private sector data on pending home sales.


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