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Forex - NZD/USD slips lower, but downside seen limited

Published 11/02/2015, 02:35 AM
Kiwi loses ground against greenback but losses limited
NZD/USD
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AUD/NZD
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Investing.com - The New Zealand dollar slipped lower against its U.S. counterpart on Monday, but losses were expected to remain limited as Friday's disappointing U.S. data continued to dampen demand for the greenback.

NZD/USD hit 0.6739 during late Asian trade, the session low; the pair subsequently consolidated at 0.6769, edging down 0.15%.

The pair was likely to find support at 0.6682, Friday's low and resistance at 0.6819, the high of October 27.

The greenback remained under pressure after the University of Michigan said on Friday that its consumer sentiment index fell to 90.0 this month from 92.1 in September, compared to expectations for a rise to 92.5.

In addition, the U.S. Bureau of Economic Analysis said that personal spending rose 0.1% last month, disappointing expectations for a 0.2% rise and after a 0.4% increase in August.

The data added to concerns over the strength of the economy after the Commerce Department said last Thursday that U.S. gross domestic product grew at an annual rate of 1.5% in the three months to September, missing expectations for growth of 1.6%.

Elsewhere, data on Monday showed that China's Caixin manufacturing purchasing managers' index rose to 48.3 in October from 47.2 the previous month, beating expectations for an uptick 47.5.

China is New Zealand's second biggest export partner.

The kiwi was lower against the Australian dollar, with AUD/NZD edging up 0.15% to 1.0546.

Also Monday, the Australian Bureau of Statistics reported that building approvals increased by 2.2% in September, beating expectations for a 2.0% gain. Building approvals declined 9.5% in August, whose figure was revised from a previously estimated 6.9% drop.

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