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Forex - NZD/USD lower in cautious trade

Published 08/27/2013, 03:03 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 Tuesday, as investors remained cautious amid ongoing uncertainty over whether the Federal Reserve will begin tapering its stimulus program next month.

NZD/USD hit 0.7803 during late Asian trade, the session low; the pair subsequently consolidated at 0.7801, shedding 0.64%.

The pair was likely to find support at 0.7737, the low of August 5 and resistance at 0.7918, the high of August 6.

Uncertainty over how soon the Fed will start to unwind stimulus measures continued after data on Monday showed that U.S. durable goods orders fell in July, raising concerns over domestic demand.

The Commerce Department said U.S. durable goods orders dropped 7.3% in July, worse than expectations for a 4% decline. It was the largest decline since August 2012.

The data came after a report on Friday showed that U.S. new home sales fell by a larger-than-forecast 13.4% in July, the largest decline in more than three years.

Separately, markets were also jittery after U.S. Secretary of State John Kerry said President Obama will hold Syria’s government accountable for using chemical weapons.

The kiwi was higher against the Australian dollar with AUD/NZD slipping 0.14%, to hit 1.1478.

Later in the day, the U.S. was to publish private sector data on house price inflation, as well as a closely watched report on consumer confidence.


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