Forex - NZD/USD slips lower, focus on ECB

Published 03/07/2013, 02:58 AM
Updated 03/07/2013, 03:01 AM
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 Thursday, as markets were jittery ahead of the outcome of the European Central Bank's monthly policy meeting, amid concerns over the outlook for growth in the euro zone.

NZD/USD hit 0.8261 during late Asian trade, the pair's lowest since March 5; the pair subsequently consolidated at 0.8274, slipping 0.11%.

The pair was likely to find support at 0.8241, the low of February 28 and resistance at 0.8332, the high of March 5.

Euro zone growth concerns persisted after data on Wednesday confirmed that the bloc's economy contracted by 0.6% in the fourth quarter, in line with preliminary estimates and economists’ forecasts.

Meanwhile, the greenback remained supported after ADP nonfarm payrolls data on Wednesday showed that the U.S. private sector added 198,000 jobs in February, above expectations for an increase of 170,000.

The upbeat data fuelled optimism over a recovery in the U.S. labor market.

The kiwi was also lower against the Australian dollar with AUD/NZD rising 0.23%, to hit 1.2382.

Also Thursday, official data showed that Australia's trade deficit widened unexpectedly in January, rising to AUD1.06 billion from a deficit of AUD0.69 billion the previous month.

Analysts had expected the trade deficit to narrow to AUD0.50 billion in January.

Later in the day, the U.S. was to publish the weekly government report on initial jobless claims and official data on the trade balance.


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