Forex - NZD/USD hits 6-day high as Fed overshadows weak NZ data

Published 09/22/2010, 05:12 AM
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EUR/NZD
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Investing.com – New Zealand's dollar advanced to a 6-day high against its U.S. counterpart on Wednesday, after the Federal Reserve's rate statement overshadowed worse-that-expected current account data from New Zealand.

NZD/USD hit 0.7388 during early European trade, the pair's highest since September 14, the pair subsequently consolidated at 0.7380, gaining 0.40%.

The pair was likely to find support at 0.7257, Tuesday's low and short-term resistance at 0.7441, the high of January 14.

Earlier in the day, official data showed that New Zealand’s current account recorded a wider-than-expected deficit in the second quarter.

In a report, Statistics New Zealand said the country’s current account recorded a seasonally adjusted deficit of NZD 0.88 billion in the second quarter, after recording a revised surplus of NZD 0.16 billion in the preceding quarter.

Economists had expected a deficit of NZD 0.15 billion in the second quarter.

The report added that year-on-year, the current account deficit was 3.0% of GDP in the second quarter, up from 2.4% in the preceding quarter.

Meanwhile, the kiwi was down against the euro, with EUR/NZD gaining 0.29% to hit 1.8099.

On Tuesday, Federal Reserve officials said the U.S. economic recovery would remain modest in the near term and indicated concern over sluggish growth and continuing low levels of inflation.

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