Investing.com - The New Zealand dollar was lower against its U.S. counterpart on Wednesday, as markets were jittery ahead of the European Central Bank's upcoming policy meeting, although recent signs of progress in tackling the euro zone's debt crisis continued to support.
NZD/USD hit 0.8426 during late Asian trade, the session low; the pair subsequently consolidated at 0.8414, sliding 0.41%.
The pair was likely to find support at 0.8396, the low of February 1 and resistance at 0.8466, the high of February 5.
The ECB was widely expected to keep rates unchanged at 0.75% on Thursday, while a post-policy meeting press conference by President Mario Draghi would be closely watched for indications on the future direction of monetary policy.
Sentiment had improved on Tuesday after data showed that the euro zone’s final services purchasing managers' index improved to a 10-month high of 48.6 in January from a final reading of 47.2 the previous month, adding to signs of recovery in the region.
The data overshadowed concerns over political uncertainty in Spain and Italy which pushed peripheral borrowing costs higher on Monday.
The kiwi was higher against the Australian dollar with AUD/NZD shedding 0.30%, to hit 1.2253.
Also Wednesday, official data showed that retail sales in Australia fell 0.2% in December, disappointing expectations for a 0.3% rise, after a 0.2% decline the previous month.
Later in the day, New Zealand was to release quarterly government data on the change in the number of people employed and the unemployment rate.
NZD/USD hit 0.8426 during late Asian trade, the session low; the pair subsequently consolidated at 0.8414, sliding 0.41%.
The pair was likely to find support at 0.8396, the low of February 1 and resistance at 0.8466, the high of February 5.
The ECB was widely expected to keep rates unchanged at 0.75% on Thursday, while a post-policy meeting press conference by President Mario Draghi would be closely watched for indications on the future direction of monetary policy.
Sentiment had improved on Tuesday after data showed that the euro zone’s final services purchasing managers' index improved to a 10-month high of 48.6 in January from a final reading of 47.2 the previous month, adding to signs of recovery in the region.
The data overshadowed concerns over political uncertainty in Spain and Italy which pushed peripheral borrowing costs higher on Monday.
The kiwi was higher against the Australian dollar with AUD/NZD shedding 0.30%, to hit 1.2253.
Also Wednesday, official data showed that retail sales in Australia fell 0.2% in December, disappointing expectations for a 0.3% rise, after a 0.2% decline the previous month.
Later in the day, New Zealand was to release quarterly government data on the change in the number of people employed and the unemployment rate.