Forex - NZD/USD lower, eyes on central bank meetings

Published 07/30/2012, 02:44 AM
NZD/USD
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EUR/NZD
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Investing.com - The New Zealand dollar was lower against its U.S. counterpart on Monday, as investors remained jittery amid uncertainty over the outcome of this week’s European Central Bank and Federal Reserve policy meetings.

NZD/USD hit 0.8072 during late Asian trade, the daily low; the pair subsequently consolidated at 0.8081, falling 0.15%.

The pair was likely to find support at 0.8022, the low of July 4 and resistance at 0.8152, the high of May 2.

Risk sentiment found support last week, after European Central Bank President Mario Draghi pledged to do whatever was necessary to protect the euro zone from collapse, fueling hopes that the ECB would act to lower borrowing costs for highly indebted countries such as Spain and Italy.

German Chancellor Angela Merkel and French President François Hollande vowed to defend the euro in a joint statement on Friday and said that they are "deeply committed to the integrity of the euro zone."

Investors remained cautious however as German Economy Minister Philipp Roesler warned the ECB earlier about any large-scale government bond purchases.

Markets were also looking ahead to the outcome of the Federal Reserve’s policy setting meeting on Wednesday, amid speculation over whether the bank will hint at further easing measures.

In New Zealand, official data showed that building consents rose 5.7% in June, following a 7.2% decline the previous month.

Elsewhere, the kiwi was higher against the euro with EUR/NZD shedding 0.16%, to hit 1.5205.

Later in the day, U.S. Treasury Secretary Timothy Geithner was to meet with German Finance Minister Wolfgang Schaeuble and Mario Draghi to discuss the global economy.


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