Investing.com - The New Zealand dollar edged lower against its U.S. counterpart on Monday, as investors locked in gains while remaining cautious ahead of a highly anticipated ruling by the German constitutional court, amid hopes for more stimulus by the Federal Reserve.
NZD/USD hit 0.8102 during late Asian trade, the daily low; the pair subsequently consolidated at 0.8111, edging down 0.13%.
The pair was likely to find support at 0.8042, the low of August 14 and resistance at 0.8171, the high of August 2.
Markets were jittery ahead of Wednesday’s German court ruling on the constitutionality of the European Stability Mechanism, as Germany’s approval will be necessary in order to implement the new bond-buying plan announced by the European Central Bank last week.
Speaking at the bank’s post-policy meeting press conference, ECB President Mario Draghi unveiled details of a bond purchasing program aimed at stemming the debt crisis in the euro zone, dubbed Outright Monetary Transactions.
Meanwhile, investors were also eyeing the outcome of the Fed’s policy meeting on Thursday, after disappointing employment data on Friday fueled fresh speculation that the U.S. central bank may announce a third round of quantitative easing to boost growth.
The Department of Labor said the U.S. economy added 96,000 jobs in August, well below expectations for 125,000, following a downwardly revised 141,000 in July.
In New Zealand, industry data showed earlier that house prices rose by 1.3% in August, following a 0.7% decline the previous month.
The kiwi was higher against the Australian dollar with AUD/NZD fell 0.14%, to hit 1.2767.
Also Monday, official data showed that home loans in Australia fell unexpectedly in July, dropping 1% after a 1% increase the previous month.
Analysts had expected home loans to rise 0.1% in July.
NZD/USD hit 0.8102 during late Asian trade, the daily low; the pair subsequently consolidated at 0.8111, edging down 0.13%.
The pair was likely to find support at 0.8042, the low of August 14 and resistance at 0.8171, the high of August 2.
Markets were jittery ahead of Wednesday’s German court ruling on the constitutionality of the European Stability Mechanism, as Germany’s approval will be necessary in order to implement the new bond-buying plan announced by the European Central Bank last week.
Speaking at the bank’s post-policy meeting press conference, ECB President Mario Draghi unveiled details of a bond purchasing program aimed at stemming the debt crisis in the euro zone, dubbed Outright Monetary Transactions.
Meanwhile, investors were also eyeing the outcome of the Fed’s policy meeting on Thursday, after disappointing employment data on Friday fueled fresh speculation that the U.S. central bank may announce a third round of quantitative easing to boost growth.
The Department of Labor said the U.S. economy added 96,000 jobs in August, well below expectations for 125,000, following a downwardly revised 141,000 in July.
In New Zealand, industry data showed earlier that house prices rose by 1.3% in August, following a 0.7% decline the previous month.
The kiwi was higher against the Australian dollar with AUD/NZD fell 0.14%, to hit 1.2767.
Also Monday, official data showed that home loans in Australia fell unexpectedly in July, dropping 1% after a 1% increase the previous month.
Analysts had expected home loans to rise 0.1% in July.