Investing.com – The New Zealand dollar snapped five consecutive days of gains against its U.S. counterpart on Thursday, slumping to a two-day low as concerns over global economic growth prospects weighed on demand for higher-yielding assets.
NZD/USD hit 0.8308 during late Asian trade, the lowest since August 16; the pair subsequently consolidated at 0.8321, falling 0.64%.
The pair was likely to find short-term support at 0.8270, the low of August 16 and resistance at 0.8424, Wednesday’s high and a seven-day high.
Concerns over the economic outlook for the euro zone were underscored after European Central Bank Governing Council member Ewald Nowotny said that he was more concerned of entering a phase of slow growth and low inflation than the risks posed by high inflation.
Nowotny added that growth in the U.S. was likely to continue, albeit at a more modest pace than previously expected.
The kiwi found support after Japanese brewer Asahi Group Holdings announced it would acquire New Zealand-based Independent Liquor in a deal valued at nearly NZD1.53 billion.
The announcement sparked speculation the Tokyo-based company was buying New Zealand dollars to complete the purchase.
Elsewhere, the kiwi was fractionally higher against its Australian cousin, with AUD/NZD easing down 0.01% to hit 1.2598.
Later in the day, the U.S. was to publish a flurry of economic data with government reports on initial jobless claims, consumer price inflation, existing home sales, manufacturing activity in Philadelphia as well as a report on natural gas stockpiles.
NZD/USD hit 0.8308 during late Asian trade, the lowest since August 16; the pair subsequently consolidated at 0.8321, falling 0.64%.
The pair was likely to find short-term support at 0.8270, the low of August 16 and resistance at 0.8424, Wednesday’s high and a seven-day high.
Concerns over the economic outlook for the euro zone were underscored after European Central Bank Governing Council member Ewald Nowotny said that he was more concerned of entering a phase of slow growth and low inflation than the risks posed by high inflation.
Nowotny added that growth in the U.S. was likely to continue, albeit at a more modest pace than previously expected.
The kiwi found support after Japanese brewer Asahi Group Holdings announced it would acquire New Zealand-based Independent Liquor in a deal valued at nearly NZD1.53 billion.
The announcement sparked speculation the Tokyo-based company was buying New Zealand dollars to complete the purchase.
Elsewhere, the kiwi was fractionally higher against its Australian cousin, with AUD/NZD easing down 0.01% to hit 1.2598.
Later in the day, the U.S. was to publish a flurry of economic data with government reports on initial jobless claims, consumer price inflation, existing home sales, manufacturing activity in Philadelphia as well as a report on natural gas stockpiles.