Forex - NZD/USD steady after mixed New Zealand data

Published 04/30/2012, 02:58 AM
NZD/USD
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EUR/NZD
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Investing.com - The New Zealand dollar was steady against its U.S. counterpart on Monday, after the release of mixed New Zealand economic data as investors remained focused on developments in the euro zone.

NZD/USD hit 0.8214 during late Asian trade, the daily low; the pair subsequently consolidated at 0.8219, edging down 0.01%.

The pair was likely to find support at 0.8170, the low of April 16 and resistance at 0.8278, the high of April 12.

The National Bank of New Zealand said earlier that its index of business confidence rose to 35.8 in April from 33.8 the previous month.

A separate report showed that New Zealand’s trade surplus narrowed unexpectedly in March, falling to NZD134 million from a surplus of NZD161 million the previous month.

Analysts had expected New Zealand’s trade surplus to widen to NZD437 million in March.

The data came after official data showed that building consents in New Zealand jumped 19.8% in March, after a 6.7% fall the previous month.

Meanwhile, risk sentiment remained under pressure after ratings agency Standard & Poor’s cut Spain’s long-term credit rating to BBB+ from A and gave it a negative outlook on Thursday, saying that the recession will undermine government efforts to reduce one of the largest budget deficits in the single currency bloc.

Elsewhere, expectations for further stimulus measures by the Federal Reserve weighed on the greenback after the U.S. Commerce Department said on Friday that gross domestic product expanded at a rate of 2.2% in the three months to March, below expectations for a 2.5% increase.

The kiwi was also steady against the euro with EUR/NZD inching 0.01% lower, to hit 1.6124.

Later in the day, the U.S. was to publish official data on core personal consumption expenditures price inflation and on personal spending, followed by a report on business activity in Chicago.


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