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Forex - NZD/USD steady, RBNZ report in focus

Published 05/13/2014, 03:00 AM
Kiwi holds steady vs. greenback, eyes on RBNZ
NZD/USD
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AUD/NZD
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Investing.com - The New Zealand dollar was steady against its U.S. counterpart on Tuesday, as markets were eyeing the Reserve Bank of New Zealand's financial stability report later in the day, while weak Chinese data and concerns over the situation in Ukraine weighed.

NZD/USD hit 0.8636 during late Asian trade, the session high; the pair subsequently consolidated at 0.8622, easing up 0.03%.

The pair was likely to find support at 0.8549, the low of April 30 and resistance at 0.8709, the high of May 7.

Demand for the kiwi remained under pressure after data showed that industrial production and retail sales in China slowed slightly in April, adding to concerns over a slowdown in the world’s second-largest economy.

China is New Zealand's second biggest export partner.

Meanwhile, investors remained cautious after pro-Russian separatists in the eastern Ukrainian city of Donetsk formally asked the Moscow to annex the region like it did with Crimea.

The kiwi was higher against the Australian dollar, with AUD/NZD shedding 0.30% to 1.0827.

Also Tuesday, official data showed that house price inflation in Australia rose 1.7% in the first quarter, compared to expectations for a 2.9% increase. House price inflation in the three months to December was revised up to a 3.8% rise from a previously estimated 3.4% increase.

A separate report showed that home loans in Australia slid 0.9% in March, confounding expectations for a 1.1% rise, after a 2.3% increase the previous month.

Later in the day, the U.S. was to produce data on retail sales, as well as reports on import prices and business inventories. The RBNZ was to publish its bi-annual financial stability report and Governor Graeme Wheeler was set to hold a press conference to discuss the report.

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