Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

Forex - NZD/USD steady, growth concerns persist

Published 08/15/2012, 03:00 AM
NZD/USD
-
AUD/NZD
-
Investing.com - The New Zealand dollar was steady against its U.S. counterpart on Wednesday, as investors remained cautious amid sustained global growth concerns and as markets awaited the release of a string of U.S. data later in the day.

NZD/USD hit 0.8038 during late Asian trade, the pair’s lowest since July 27; the pair subsequently consolidated at 0.8048, easing 0.07%.

The pair was likely to find support at 0.7989, the low of July 27 and resistance at 0.8113, Tuesday’s high.

Markets were jittery after data on Tuesday showed that the euro zone’s gross domestic product contracted by 0.2% in the three months to June, bringing the annualized rate of contraction to 0.4%.

In addition, the ZEW Centre for Economic Research said that its index of German economic sentiment came in at minus 25.5 for August; down from July’s reading of minus 19.6 and defying expectations for a reading of minus 19.3.

Sentiment remained mildly supported however by expectations that recent evidence of a slowdown in economic growth would prompt world central banks to implement more easing measures to spur the economic recovery.

Meanwhile, the greenback gained ground after data on Tuesday showed that U.S. retail sales snapped four successive months of declines in July, jumping 0.8%, surpassing expectations for a 0.3% increase.

The kiwi was higher against the Australian dollar with AUD/NZD edging down 0.10%, to hit 1.3011.

Also Wednesday, the Westpac Banking Corporation said that consumer sentiment in Australia declined by 2.5% in August, following a 3.7% increase the previous month.

Separately, official data showed that wage prices in Australia rose 1% in the second quarter, more than the expected 0.8% rise and following a 0.9% increase in the previous quarter.

Later in the day, the U.S. was to release official data on consumer price inflation and industrial production, as well as a report on manufacturing activity in the New York area.


Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.