Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

Forex - NZD/USD lower as markets eye euro zone developments

Published 08/22/2012, 03:04 AM
NZD/USD
-
AUD/NZD
-
Investing.com - The New Zealand dollar was lower against its U.S. counterpart on Wednesday, as investors eyed a series of highly anticipated euro zone meetings this week, amid speculation that fresh steps could be made toward handling the region’s financial woes.

NZD/USD hit 0.8078 during late Asian trade, the pair’s lowest since August 20; the pair subsequently consolidated at 0.8083, shedding 0.32%.

The pair was likely to find support at 0.8036, the low of August 15 and resistance at 0.8128, the high of August 13.

Luxemburg’s Prime Minister Jean-Claude Juncker, who also heads the group of euro zone finance ministers, was to hold talks with Greek Prime Minister Antonis Samaras later Wednesday, to discuss a two-year extension of the country’s economic reform program.

German Chancellor Angela Merkel is to meet with French President Francois Hollande on Thursday, while Antonis Samaras is to meet with the French and German leaders later in the week.

Market sentiment improved on Tuesday, after the U.K.’s Telegraph newspaper said earlier that it could confirm weekend reports that the European Central Bank may set a cap on peripheral euro zone bond yields at its next policy meeting in September.

Investors were also eyeing the minutes of the Federal Reserve’s August policy meeting later in the day, amid speculation over how close the U.S. central bank may be to implementing another round of stimulus measures.

The export-related kiwi also came under pressure after data showed that Japan posted a worse-than-expected trade deficit in July, hurt by the euro zone’s debt crisis and a slowdown in China.

The kiwi was fractionally higher against the Australian dollar with AUD/NZD edging down 0.09%, to hit 1.2922.

Also Wednesday, the Melbourne Institute said that its index of leading economic indicators for Australia rose 0.5% in June, following a revised 0.9% increase the previous month.

Later in the day, the U.S. was to release industry data on existing home sales.


Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.