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Forex - NZD/USD lower on Chinese data, Fed speculation

Published 07/03/2013, 03:05 AM
Updated 07/03/2013, 03:06 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 Wednesday, after the release of disappointing Chinese service sector data and as expectations for a near-term end to the U.S. stimulus program continued to support the greenback.

NZD/USD hit 0.7712 during late Asian trade, the pair's lowest since June 28; the pair subsequently consolidated at 0.7717, sliding 0.43%.

The pair was likely to find near-term support at 0.7698, the low of June 25 and resistance at 0.7853, the high of June 27.

A government report showed that China’s non-manufacturing purchasing managers' index inched down to 53.9 in June from 54.3 in May.

China is New Zealand's second biggest export partner.

Meanwhile, investors were looking ahead to Friday’s U.S. nonfarm payrolls data, for further clues on when the Federal Reserve may decide to unwind its USD85 billion-a-month stimulus program.

The kiwi was higher against the Australian dollar with AUD/NZD shedding 0.46%, to hit 1.1747.

The Aussie came under pressure after Reserve Bank of Australia Governor Glenn Stevens said the board "deliberated for a very long time" on Tuesday before deciding to keep its key interest rate unchanged at a record low 2.75%, signalling the possibility for rate cuts in the near future.

In addition, official data showed that retail sales rose 0.1% in May, less than the expected 0.3% increase, after a 0.1% fall the previous month.

A separate report showed that Australia's trade surplus expanded unexpectedly in May, rising to AUD0.67 billion from a surplus of AUD0.17 billion the previous month.

Analysts had expected the trade balance to fall into a deficit of AUD0.05 billion in May.

Later in the day, the U.S. was to release the ADP report on nonfarm payrolls, as well as the weekly government report on initial jobless claims one day ahead of schedule, and data on the trade balance.


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