Investing.com - The New Zealand dollar was higher against the U.S. dollar on Tuesday, following improved manufacturing data out of China but concerns over the worsening debt crisis in the euro zone capped gains.
NZD/USD hit 0.7922 during late Asian trade, the session high; the pair subsequently consolidated at 0.7906, gaining 0.41%.
The pair was likely to find support at 0.7865, Monday’s low and resistance at 0.7989, Monday’s high.
Investor sentiment found support following a report showing that China’s HSBC purchasing managers index improved to 49.5 in July, its highest level since February, from a final reading of 48.2 in June.
While the index remained below the 50 level which indicates contraction, the improvement from the previous month eased concerns over a slowdown in the world’s second largest economy.
But investors remained wary over the worsening situation in the euro zone after rating’s agency Moody’s cut its outlook on Germany to negative from stable overnight, while fears that Spain will be the next euro zone member to require a full-scale bailout also weighed.
The kiwi was trading within striking distance of a record high against the euro, with EUR/NZD down 0.48% to 1.5313, and edged higher against its Australian cousin, with AUD/NZD dipping 0.08% 1.3014.
Reserve Bank of Australia Governor Glenn Stevens said earlier Tuesday that Australia’s economy was becoming strong enough to cope with global shocks arising from the euro zone debt crisis or a slowdown in China and added that current monetary policy was appropriate.
Later in the day, the U.S. was also to release preliminary data on manufacturing activity, while Federal Reserve Chairman Ben Bernanke was to speak.
NZD/USD hit 0.7922 during late Asian trade, the session high; the pair subsequently consolidated at 0.7906, gaining 0.41%.
The pair was likely to find support at 0.7865, Monday’s low and resistance at 0.7989, Monday’s high.
Investor sentiment found support following a report showing that China’s HSBC purchasing managers index improved to 49.5 in July, its highest level since February, from a final reading of 48.2 in June.
While the index remained below the 50 level which indicates contraction, the improvement from the previous month eased concerns over a slowdown in the world’s second largest economy.
But investors remained wary over the worsening situation in the euro zone after rating’s agency Moody’s cut its outlook on Germany to negative from stable overnight, while fears that Spain will be the next euro zone member to require a full-scale bailout also weighed.
The kiwi was trading within striking distance of a record high against the euro, with EUR/NZD down 0.48% to 1.5313, and edged higher against its Australian cousin, with AUD/NZD dipping 0.08% 1.3014.
Reserve Bank of Australia Governor Glenn Stevens said earlier Tuesday that Australia’s economy was becoming strong enough to cope with global shocks arising from the euro zone debt crisis or a slowdown in China and added that current monetary policy was appropriate.
Later in the day, the U.S. was also to release preliminary data on manufacturing activity, while Federal Reserve Chairman Ben Bernanke was to speak.