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Forex - NZD/USD rises but gains capped

Published 03/11/2014, 03:57 AM
Kiwi higher against dollar, gains limited
NZD/USD
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AUD/NZD
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Investing.com - The New Zealand dollar rose against its U.S. counterpart on Tuesday, but gains were capped as disappointing Chinese trade balance data over the weekend continued to weigh on risk sentiment.

NZD/USD hit 0.8506 during late Asian trade, the pair's highest since March 7; the pair subsequently consolidated at 0.8493, gaining 0.25%.

The pair was likely to find support at 0.8441, Monday's low and resistance at 0.8524, the high of March 7 and a four-and-a-half month high.

Investors remained cautious after data released over the weekend showed that Chinese exports fell 18.1% on a year-over-year basis in February, confounding expectations for a 6.8% increase, following a rise of 10.6% in January.

China is New Zealand's second biggest export partner.

The kiwi was higher against the Australian dollar, with AUD/NZD slipping 0.09% to 1.0638.

Also Tuesday, the National Australia Bank earlier said that its business confidence index ticked down to 7 in February, from a reading of 8 the previous month.

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