Forex - NZD/USD steady in cautious trade

Published 05/06/2013, 03:06 AM
Updated 05/06/2013, 03:07 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 on Monday, as Friday's strong U.S. employment data continued to support, although concerns over the outlook for growth in the euro zone persisted.

NZD/USD hit 0.8556 during late Asian trade, the pair's highest since April 30; the pair subsequently consolidated at 0.8539, easing up 0.02%.

The pair was likely to find support at 0.8482, the low of May 1 and resistance at 0.8583, the high of May 1.

Sentiment was boosted on Friday by data showing that the U.S. economy added 165,000 jobs in April, above expectations for an increase of 145,000, while job increases for the previous month were revised up to 138,000.

The U.S. unemployment rate unexpectedly fell to a four-month low of 7.5% from 7.6% in March.

Meanwhile, the European Commission revised down euro zone growth forecasts on Friday, saying it now expects the bloc’s economy to contract by 0.4% this year, more than the 0.3% decline it predicted previously.

The kiwi was higher against the Australian dollar with AUD/NZD declining 0.41%, to hit 1.2036.

Also Monday, official data showed that retail sales in Australia fell 0.4% in March, disappointing expectations for a 0.2% rise, after an increase of 1.3% the previous month.

A separate report showed that Australian job advertisements declined 1.30% in April, after a 0.50% fall the previous month.


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