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Forex - NZD/USD lower in risk-off trade

Published 01/17/2013, 02:59 AM
Updated 01/17/2013, 03:01 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 Thursday, as market sentiment remained under pressure amid U.S. debt concerns and warnings over the outlook for global economic growth.

NZD/USD hit 0.8382 during late Asian trade, the session low; the pair subsequently consolidated at 0.8395, slipping 0.18%.

The pair was likely to find support at 0.8360, the low of January 14 and resistance at 0.8430, Wednesday's high.

Uncertainty over the U.S. debt ceiling deadlock continued to weigh after President Barack Obama urged Republicans earlier in the week to approve an increase in the borrowing limit without seeking policy concessions in return.

Market sentiment was also hit after the World Bank cut on Tuesday its forecast for global growth to 2.4% this year from 3% in June and warned that developing nations would struggle in 2013.

The kiwi was higher against the Australian dollar with AUD/NZD dropping 0.44%, to hit 1.2514.

Also Thursday, official data showed that the Australian economy cut 5,500 jobs in December, disappointing expectations for a 4,500 rise, after a 17,100 increase the previous month.

Australia's unemployment rate ticked up to 5.4% last month from 5.3% in November, in line with expectations.

Separately, the Melbourne Institute said that inflation expectations in Australia edged up to 2.0% in December, from 1.8% the previous month.

Later in the day, the U.S. was to produce official data on building permits and housing starts, in addition to the weekly government report on initial jobless claims and data on manufacturing activity in Philadelphia.


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