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Forex - NZD/USD lower despite N.Z. current account report

Published 06/17/2015, 02:47 AM
Kiwi declines against broadly stronger greenback ahead of Fed statement
NZD/USD
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EUR/NZD
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Investing.com - The New Zealand dollar slid lower against its U.S. counterpart on Wednesday, despite the release of upeat data on New Zealand's current account, as demand for the greenback strengthened ahead of the Federal Reserve's policy statement later in the day.

NZD/USD hit 0.6963 during late Asian trade, the session low; the pair subsequently consolidated at 0.6957, sliding 0.42%.

The pair was likely to find support at 0.6941, the low of June 12 and a nearly five-year low and resistance at 0.7027, the high of June 12.

In a report, Statistics New Zealand said that the country's current account swung into a surplus of NZ$0.66 billion in the first quarter from a deficit of NZ$3.19 billion in the last three months of 2014.

Analysts had expected the current account to hit a surplus of NZ$0.23 billion in the last quarter.

Meanwhile, the greenback remained supported as investors eyed the Fed’s rate statement later Wednesday for any clear signal about a possible timeline for hiking interest rates, which have remained close to zero since late 2008.

On Tuesday, data showing that U.S. building permits rose to an almost eight-year high in May added to the view that the economy is regaining momentum after a weak first quarter.

Housing starts fell last month following strong gains in April, but remained at levels consistent with a strengthening housing market.

The kiwi was lower against the euro, with EUR/NZD advancing 0.42% to 1.6167.

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