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Forex - NZD/USD steady after weak China PMI

Published 01/06/2014, 02:53 AM
Kiwi holds steady after weak Chinese data
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 Monday, after disappointing Chinese data while expectations for further reductions in stimulus by the Federal Reserve supported the greenback.

NZD/USD hit 0.8282 during late Asian trade, the session high; the pair subsequently consolidated at 0.8273, easing up 0.01%.

The pair was likely to find support at 0.8179, the low of January 3 and resistance at 0.8334, the high of December 10.

Data over the weekend showed that activity in China’s services sector slumped to the weakest level since August 2011 in December, fuelling concerns over the outlook for growth in the world’s second largest economy.

China is New Zealand's second biggest export partner.

Meanwhile, the dollar remained supported after comments from outgoing Federal Reserve Chairman Ben Bernanke boosted the outlook for the U.S. economy.

On Friday, Bernanke said the U.S. economy should continue to improve in 2014, but added that the recovery remains incomplete.

The kiwi was lower against the Australian dollar, with AUD/NZD edging up 0.18% to 1.0832.

Later in the day, the U.S. was to publish data on factory orders, while the Institute of Supply Management was to release data on service sector activity.


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