Forex - NZD/USD slips lower, focus on U.S. data

Published 06/05/2013, 02:57 AM
Updated 06/05/2013, 03:06 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 Wednesday, as markets eyed the release of U.S. employment data later in the day, amid growing uncertainty over the future of the Federal Reserve's stimulus program.

NZD/USD hit 0.8001 during late Asian trade, the session low; the pair subsequently consolidated at 0.8007, edging down 0.13%.

The pair was likely to find support at 0.7943, the low of June 3 and resistance at 0.8119, the high of June 3.

Markets were focusing on the U.S. private sector jobs report by payroll processor ADP later Wednesday for clues on Friday’s key nonfarm payrolls data.

Data on Monday showing that activity in the U.S. manufacturing sector contracted for the first time in six months in May dampened expectations that the Fed will scale back its asset purchase program later this year.

The kiwi was higher against the Australian dollar with AUD/NZD shedding 0.52%, to hit 1.1973.

Also Wednesday, official data showed that Australia's gross domestic product rose 0.6% in the first quarter, after expanding at the same pace in the previous quarter. Analysts had expected the GDP to rise 0.8% in the last quarter.

The report also showed that Australia's GDP rose 2.5% in the first quarter from a year earlier, expanding at the slowest annual pace in nearly two years.

The data came a day after the Reserve Bank of Australia held its benchmark interest rate at a record low of 2.75%, but said it still has room to cut interest rates further.


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