Investing.com – The New Zealand dollar slipped against its U.S. counterpart on Wednesday, touching a daily low as investors awaited the outcome of the Federal Reserve’s policy setting meeting later in the day.
NZD/USD hit 0.8210 during late Asian trade, the daily low; the pair subsequently consolidated at 0.8214, shedding 0.32%.
The pair was likely to find support at 0.8119, the low of September 15 and an almost one-month low and resistance at 0.8264, Monday’s high.
Speculation was growing that Federal Reserve Chairman Ben Bernanke would announce plans to replace short-term Treasuries with long-term bonds, in a move known as Operation Twist after the central bank’s policy setting meeting later in the day.
Meanwhile, concerns over the outlook for global growth weighed after the International Monetary Fund downgraded its global growth outlook for 2012 to 4% from a previous estimate of 4.3%, saying that the world economy has entered a "dangerous new phase".
The New Zealand dollar found support after a report showed that China's Conference Board Leading Economic Index rose by 0.6% in July to 158.6, following a 0.9% increase in June and a 0.4% increase in May. China is New Zealand’s second largest export destination.
The kiwi was also lower against its Australian cousin, with AUD/NZD easing up 0.09% to hit 1.2476.
The New Zealand dollar was largely unchanged earlier after Statistics NZ said the current account swung to a NZD921 million deficit in the second quarter from a revised surplus of NZD90 million in the previous quarter.
NZD/USD hit 0.8210 during late Asian trade, the daily low; the pair subsequently consolidated at 0.8214, shedding 0.32%.
The pair was likely to find support at 0.8119, the low of September 15 and an almost one-month low and resistance at 0.8264, Monday’s high.
Speculation was growing that Federal Reserve Chairman Ben Bernanke would announce plans to replace short-term Treasuries with long-term bonds, in a move known as Operation Twist after the central bank’s policy setting meeting later in the day.
Meanwhile, concerns over the outlook for global growth weighed after the International Monetary Fund downgraded its global growth outlook for 2012 to 4% from a previous estimate of 4.3%, saying that the world economy has entered a "dangerous new phase".
The New Zealand dollar found support after a report showed that China's Conference Board Leading Economic Index rose by 0.6% in July to 158.6, following a 0.9% increase in June and a 0.4% increase in May. China is New Zealand’s second largest export destination.
The kiwi was also lower against its Australian cousin, with AUD/NZD easing up 0.09% to hit 1.2476.
The New Zealand dollar was largely unchanged earlier after Statistics NZ said the current account swung to a NZD921 million deficit in the second quarter from a revised surplus of NZD90 million in the previous quarter.