Forex - NZD/USD rises to more than 1-month high

Published 04/02/2013, 03:05 AM
NZD/USD
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AUD/NZD
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Investing.com - The New Zealand dollar rose to a more than one-month high against its U.S. counterpart on Tuesday, after downbeat U.S. manufacturing data sparked fresh concerns over the strength of the country's economic recovery.

NZD/USD hit 0.8412 during late Asian trade, the pair's highest since February 25; the pair subsequently consolidated at 0.8409, advancing 0.47%.

The pair was likely to find support at 0.8352, the low of April 1 and resistance at 0.8418, the high of February 25.

The greenback weakened after the Institute of Supply Management said on Monday that its U.S. manufacturing purchasing managers’ index declined to 51.3 in March, its lowest level since December, from 54.2% in February.

Analysts had expected the PMI to remain unchanged last month.

The kiwi was steady against the Australian dollar with AUD/NZD dipping 0.06%, to hit 1.2444.

Also Tuesday, the Reserve Bank of Australia held the benchmark interest rate at a 50-year low of 3%, citing the recent recovery in household spending.

Commenting on the decision, RBA Governor Glenn Stevens said that "there are a number of indications that the substantial easing of monetary policy during late 2011 and 2012 is having an expansionary effect".

Later in the day, the U.S. was to release a government report on factory orders.


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