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Forex - NZD/USD rises despite strong U.S. data

Published 08/01/2013, 11:39 PM
Updated 08/01/2013, 11:40 PM
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NZD/JPY
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Investing.com - The New Zealand dollar traded higher against its U.S. rival during Friday’s trading session despite a pair of impressive data points out of the world’s largest economy during Thursday’s U.S. session.

In Asian trading Friday, NZD/USD rose 0.16% to 0.7906. The pair was likely to find support at 0.7906, the low of July 24 and resistance at 0.8099, the high of July 29.

In U.S. economic news out Thursday, the Institute for Supply Management said its July manufacturing index soared to 55.4% vs. 50.9% in June, good for the best reading since 2011. Economists expected a July reading of 52%. Readings above 50% indicate expansion.

The Labor Department said initial claims for jobless benefits dropped by 19,000 last week to 326,000, the lowest level since January 2008. The less volatile four-week moving average dropped by 4,500 to 341,250. The Labor Department delivers the July jobs report Friday before U.S. markets open.

Those data points came a day after data showed that the ANZ business confidence index rose to 52.8 in July, from a reading of 50.1 the previous month, hitting a 14-year high.

Elsewhere, AUD/NZD fell 0.24% to 1.1282 after reports said Australia will likely post a budget deficit of AUD30 billion for the current fiscal year, well above the AUD15 billion forecast just eight weeks ago. The deficit for the 2014-15 fiscal year is expected to be AUD24 billion, more than double the initial estimate of AUD10.9 billion.

The kiwi has regularly been touching new multi-year highs against the Aussie in recent days.

NZD/JPY inched down 0.03% to 78.60 after the Bank of Japan said that Japan’s monetary base increased 38% last month following a 36% rise in June. Analysts expected a July increase of 43.2%.


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