Investing.com - The New Zealand dollar was steady against its U.S. counterpart on Thursday, following the release of disappointing New Zealand employment data, as sentiment remained supported by ongoing hopes for further action by central banks.
NZD/USD hit 0.8112 during late Asian trade, the pair’s lowest since August 3; the pair subsequently consolidated at 0.8144, easing 0.04%.
The pair was likely to find support at 0.8069, the low of August 2 and resistance at 0.8197, the high of August 3.
The kiwi dropped to a four-day low against the greenback earlier, after official data showed that employment change in New Zealand fell unexpectedly in the second quarter, ticking down 0.1% after a 0.4% rise the previous quarter.
Analysts had expected employment change to rise 0.3% in the second quarter.
The report also showed that New Zealand’s unemployment rate rose to 6.8% in the second quarter from 6.7% in the previous quarter, disappointing expectations for a decline to 6.5%.
But market sentiment remained supported after data showing that China's annual consumer inflation fell to a 30-month low in July added to speculation that the country’s central bank may implement further monetary easing.
China is New Zealand’s second biggest export partner.
Sentiment was also supported by expectations that the European Central Bank will soon take steps to help lower Spanish and Italian borrowing costs after the bank indicated last week that it may restart its bond buying program.
Earlier in the week, a Federal Reserve official kept alive hopes for U.S. central bank intervention by saying the Fed should launch an aggressive bond-buying program to aid the economy until unemployment begins to fall.
Elsewhere, the kiwi was lower against the euro with EUR/NZD rising 0.20%, to hit 1.5197.
Later in the day, the U.S. was to release official data on the trade balance and initial jobless claims.
NZD/USD hit 0.8112 during late Asian trade, the pair’s lowest since August 3; the pair subsequently consolidated at 0.8144, easing 0.04%.
The pair was likely to find support at 0.8069, the low of August 2 and resistance at 0.8197, the high of August 3.
The kiwi dropped to a four-day low against the greenback earlier, after official data showed that employment change in New Zealand fell unexpectedly in the second quarter, ticking down 0.1% after a 0.4% rise the previous quarter.
Analysts had expected employment change to rise 0.3% in the second quarter.
The report also showed that New Zealand’s unemployment rate rose to 6.8% in the second quarter from 6.7% in the previous quarter, disappointing expectations for a decline to 6.5%.
But market sentiment remained supported after data showing that China's annual consumer inflation fell to a 30-month low in July added to speculation that the country’s central bank may implement further monetary easing.
China is New Zealand’s second biggest export partner.
Sentiment was also supported by expectations that the European Central Bank will soon take steps to help lower Spanish and Italian borrowing costs after the bank indicated last week that it may restart its bond buying program.
Earlier in the week, a Federal Reserve official kept alive hopes for U.S. central bank intervention by saying the Fed should launch an aggressive bond-buying program to aid the economy until unemployment begins to fall.
Elsewhere, the kiwi was lower against the euro with EUR/NZD rising 0.20%, to hit 1.5197.
Later in the day, the U.S. was to release official data on the trade balance and initial jobless claims.