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Forex - NZD/USD holds steady, all eyes on Fed

Published 12/14/2015, 02:28 AM
Kiwi little changed vs. greenback, markets focus on Fed meeting
NZD/USD
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AUD/NZD
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Investing.com - The New Zealand dollar held steady against its U.S. counterpart on Monday, as investors remained cautious ahead of the Federal Reserve's highly-anticipated policy meeting this week.

NZD/USD hit 0.6692 during late Asian trade, the pair's lowest since December 9; the pair subsequently consolidated at 0.6710.

The pair was likely to find support at 0.6622, the low of December 7 and resistance at 0.6787, the high of December 11.

Most investors expect the Fed to raise interest rates for the first time since June 2006 at its upcoming meeting on December 15-16.

Higher interest rates would make the U.S. dollar more attractive to yield-seeking investors.

The greenback also remained supported after data on Friday showing that U.S. retail sales rose 0.6% in November, following a 0.2% increase in October.

A separate report showed that the U.S. producer price index rose 0.3% in November, but was down 1.1% on a year-over-year basis.

Investors continued to focus on oil prices after they fell to the lowest levels since early 2009 on Friday amid expectations that a global supply glut will worsen next year.

Falling oil prices have sparked renewed concerns over the health of the global economy and weighed on global inflation.

The kiwi was lower against the Australian dollar, with AUD/NZD rising 0.21% to 1.0736.

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