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Forex - NZD/USD steady as global growth concerns weigh

Published 07/03/2012, 02:59 AM
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, as market sentiment remained fragile amid sustained concerns over the handling of the euro zone’s debt crisis and global economic growth.

NZD/USD hit 0.8062 during late Asian trade, the pair’s highest since May 3; the pair subsequently consolidated at 0.8041, easing up 0.06%.

The pair was likely to find support at 0.7936, the low of May 4 and resistance at 0.8105, the high of May 3.

Market sentiment remained under pressure after a string of weak data from the euro zone and the U.S. added to concerns over the perspective for global economic growth. 

Investors were also wary over the long-term effectiveness of measures announced last week to tackle the euro zone’s debt crisis and uncertainty over how and when the measures can be implemented.

Meanwhile, markets were eyeing the outcome of the European Central Bank’s policy meeting on Thursday, amid growing expectations for a rate cut to support the faltering economy.

Elsewhere, the kiwi was fractionally lower against the Australian dollar with AUD/NZD edging up 0.09%, to hit 1.2763.

Also Tuesday, the Reserve Bank of Australia held its benchmark interest rate at 3.50%, saying the economy continued to grow in the first part of 2012, at a pace somewhat stronger than earlier indicated.

In addition, official data showed that building approvals in Australia jumped by 27.3% in May, blowing past expectations for a 5.1% rise and following a 7.6% drop the previous month.

Later in the day, the U.S. was to release official data on factory orders.


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