Forex - NZD/USD slips as market sentiment wanes

Published 10/01/2012, 03:34 AM
Updated 10/01/2012, 03:35 AM
NZD/USD
-
AUD/NZD
-
Investing.com - The New Zealand dollar was fractionally lower against its U.S. counterpart on Monday, as investors renained cautious after the results of Spanish bank stress tests on Friday, while concerns over the outlook for global economic growth weighed.

NZD/USD hit 0.8266 during European morning trade, the pair's lowest since September 27; the pair subsequently consolidated at 0.8293, edging down 0.08%.

The pair was likely to find support at 0.8236, the low of September 18 and resistance at 0.8353, the high of September 14.

The Bank of Spain announced Friday that the recapitalization needs of Spanish banks amounted to EUR59.3 billion, broadly in line with market expectations.

But investors remained cautious as the Spanish government said the effort to clean up an ailing banking system will widen its budget gap and increase its debt load.

Markets were also awaiting the outcome of Moody's rating agency's latest review of Spain's sovereign rating, which may see it downgraded to junk status.

Meanwhile, data showing that manufacturing activity in China contracted for the second consecutive month in September, falling to the lowest level since November 2011, sparked fresh concerns over the outlook for growth in the world's second largest economy.

China is New Zealand's second biggest export partner.

The kiwi was steady against the Australian dollar with AUD/NZD easing up 0.06%, to hit 1.2506.

Later in the day, the euro zone was to release revised data on manufacturing activity, as well as official data on the unemployment rate throughout the region.

The U.S. was to publish a report by the Institute for Supply Management on manufacturing PMI, while Federal Reserve Chairman Ben Bernanke was to speak at the Economic Club of Indiana, in Indianapolis.


Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.