Forex - NZD/USD pares losses as rebuilding efforts boost NZ economy

Published 09/07/2010, 09:40 AM
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EUR/NZD
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Investing.com – New Zealand’s dollar pared losses against its U.S. counterpart on Tuesday, as reconstruction efforts to rebuild the country’s second-largest city boosted New Zealand’s economy.

NZD/USD rebounded from a daily low of 0.7188 during European afternoon trade, to hit 0.7222, shedding 0.14%.

The pair was likely to find support at 0.7129, the low of September 3, and resistance at 0.7291, the high of August 10.

Earlier in the day, reports from New Zealand showed that rebuilding efforts to the country’s second largest city, Christchurch were underway, following Saturday’s massive 7.1 magnitude earthquake that hit the region.

New Zealand’s government estimated that the cleanup and damage bill would reach close to NZD 2 billion, or just over 1% of the country’s GDP.

According to economists in New Zealand, the rebuilding effort would help spur an economic rebound over the next 12 months, with constrction and manufacturing sector companies benefitting the most.

Meanwhile, the kiwi was up against the euro, with EUR/NZD shedding 0.51% to hit 1.7674.
  
Later in the day, New Zealand was to release key data on manufacturing sales.

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