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Forex - NZD/USD lower in risk-off trade

Published 02/01/2012, 03:28 AM
NZD/USD
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AUD/NZD
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Investing.com -The New Zealand dollar was down against its U.S. counterpart on Wednesday, but was close to an all-time high against the euro as a debt swap deal between Greece and its private creditors remained unresolved.

NZD/USD hit 0.8214 during late Asian trade, the session low; the pair subsequently consolidated at 0.8243, shedding 0.26%.

The pair was likely o find support at 0.8179, Tuesday’s low and resistance at 0.8299, Tuesday’s high and a four-and-a-half month high.

Market sentiment remained on the back foot as negotiations over a debt restructuring deal between Greece and its private creditors dragged on and concerns mounted over the next set of talks between Greece and its public lenders.

Risk appetite was also hit after weaker-than-expected U.S. data on manufacturing and consumer confidence on Tuesday underlined concerns over the outlook for the U.S. economic recovery, after the Federal Reserve pushed back the timing of likely interest rate hike to mid-2014 last week.

The kiwi found some support after a report earlier showed that China's official manufacturing purchasing managers index rose to 50.5 in January from 50.3 the previous month, slightly better than expectations for a reading of 49.5.

China is New Zealand’s second-largest trading partner.

The kiwi was slightly lower against its Australian cousin, with AUD/NZD easing up 0.16% to hit 1.2869.

Later in the day, the U.S. was to release industry data on non-farm employment change, as well as a report by the Institute for Supply Management on manufacturing activity.


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