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Forex - NZD/USD little changed, close to 7-day low

Published 08/28/2012, 03:00 AM
NZD/USD
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AUD/NZD
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Investing.com - The New Zealand dollar was little changed against its U.S. counterpart on Tuesday, hovering close to a seven-day low, following Japan’s weak growth assessment and as markets were jittery ahead of a speech by Federal Reserve Chairman Ben Bernanke later in the week.

NZD/USD hit 0.8058 during late Asian trade, the pair’s lowest since August 16; the pair subsequently consolidated at 0.8086, dipping 0.01%.

The pair was likely to find support at 0.8022, the low of July 4 and resistance at 0.8140, the high of August 24.

The kiwi came under pressure after Japan’s government downgraded its assessment of the economy for the first time since October 2011, as slowing growth in the U.S. and China, on top of the euro zone’s debt crisis, weighed on exports and factory output.  

Meanwhile, investors remained cautious ahead of a speech by Fed Chairman Ben Bernanke at an annual symposium in Jackson Hole on Friday, amid ongoing speculation over how close the U.S. central bank is to implementing more stimulus measures.

The kiwi was also steady against the Australian dollar with AUD/NZD adding 0.05%, to hit 1.2826.

Also Tuesday, industry data showed that new home sales in Australia fell 5.6% in July, after a 2.8% increase the previous month.

Later in the day, the U.S. was to release a report on consumer confidence, a leading indicator of economic health, as well as industry data on house price inflation.


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