Forex - NZD/USD lower as U.S. outlook improves

Published 03/12/2012, 04:16 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 Monday, as positive U.S. employment data eased concerns over the country’s economic recovery, sending the greenback broadly higher.

NZD/USD hit 0.8170 during late Asian trade, the pair’s lowest since March 8; the pair subsequently consolidated at 0.8179, declining 0.43%.

The pair was likely to find support at 0.8138, the low of March 8 and resistance at 0.8222, the high of March 6.

The Department of Labor said the U.S. economy added 227,000 jobs in February after increasing by a revised 284,000 the previous month. The unemployment rate held steady at a three year low of 8.3%.

The strong data boosted the dollar as it diminished expectations for a fresh round of asset purchases by the Federal Reserve to help stimulate economic growth.

Meanwhile, the risk-related kiwi remained vulnerable after the International Swaps and Derivatives Association said Greece’s debt swap constituted a “credit event” that would activate credit-default swaps, which designed to protect investors against losses on Greek sovereign debt.

Earlier in the day, government data showed that core machinery orders in Japan rose more-than-expected in January, rising 3.4% after a 7.1% decline the previous month.

Japan is New Zealand’s second biggest export partner.

Elsewhere, the kiwi was fractionally lower against the Australian dollar with AUD/NZD edging up 0.08%, to hit 1.2884.

Later in the day, the U.S. was to publish government data on the federal budget balance.


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