Forex - NZD/USD lower ahead of RBNZ, Fed statements

Published 01/25/2012, 03:09 AM
NZD/USD
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AUD/NZD
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Investing.com - The New Zealand dollar was lower against its U.S. counterpart on Wednesday, as markets were jittery ahead of the Reserve Bank of New Zealand and the U.S. Federal Reserve’s rate statements later in the day while Greece debt concerns persisted.

NZD/USD hit 0.8089 during late Asian trade, the daily low; the pair subsequently consolidated at 0.8110, slipping 0.11%.

The pair was likely to find support at 0.8054, Tuesday’s low and resistance at 0.8176, the high of June 24.

Concerns over a potential Greek default remained as talks between euro zone finance ministers on a deal to help restructure the country’s sovereign debt stalled on Tuesday.

Elsewhere, government data showed earlier that Japan’s trade deficit widened unexpectedly in December, marking the country’s first annual trade deficit since 1980.

Japan’s Finance Ministry said that the country’s trade deficit widened to JPY0.57 trillion from a deficit of JPY0.53 trillion in November. Analysts had expected Japan’s trade balance to rise to a JPY0.36 trillion surplus in December.

Japan is New Zealand’s second largest export partner.

The kiwi was lower against the Australian dollar with AUD/NZD advancing 0.43%, to hit 1.2979.

Concluding a two-day policy meeting, the Fed was to announce the federal funds rate and publish its official rate statement later Wednesday. The U.S. was also to release industry data on pending home sales, followed by official data on crude oil stockpiles.

Meanwhile, the World Economic Forum was to begin its five-day annual meeting in Davos in Switzerland.


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