Forex - NZD/USD retreats from 2-day high as risk aversion sharpens

Published 11/11/2010, 08:15 AM
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EUR/NZD
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Investing.com – The New Zealand dollar was down against its U.S. counterpart on Thursday, retreating from a 2-day high, amid sharpened risk aversion as the 2-day Group of 20 world economic summit got underway in Seoul.

NZD/USD retreated from 0.7872 during European afternoon trade, the pair’s highest since November 9; the pair subsequently consolidated at 0.7825, shedding 0.04%.

The pair was likely to find support at 0.7736, Wednesday’s low, and resistance at 0.7937, the high of November 8.

On Thursday, G-20 leaders began a 2-day world economic summit amid growing concerns about trade imbalances and currency controls.

The summit was expected to be closely watched by investors following the Federal Reserve’s decision last week to buy its own debt to keep borrowing costs near zero, which attracted criticism from other G-20 leaders including Germany and China.

Speaking ahead of the summit, U.S. Treasury Secretary Timothy Geithner said, “We think everyone’s going to have an interest in defusing some of the tension and agreeing on a multilateral process for helping resolve these pressures with less risk of financial market stress and political pressure,”.

Meanwhile, the kiwi was up against the euro, with EUR/NZD falling 0.65% to hit 1.7490.

Earlier in the day, Business NZ, an industry group, showed that its manufacturing index rose to 49.7 in October, after rising to a revised 49.5 in September. On the index, a reading above 50.0 indicates expansion, below indicates contraction.


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