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Forex- NZD/USD tumbles to 5-day low after U.S. new home sales rise

Published 10/27/2010, 10:26 AM
NZD/USD
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EUR/NZD
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Investing.com – New Zealand’s dollar extended losses against its U.S. counterpart on Wednesday, falling to a fresh 5-day low after the release of better-than-expected U.S. data on new home sales.

NZD/USD hit 0.7439 during European afternoon trade, the pair’s lowest since October 20; the pair subsequently consolidated at 0.7432, tumbling 0.84%.

The pair was likely to find short-term support at 0.7356, the low of October 5 and resistance at 0.7560, the high of October 25.

Earlier in the day, the Census Bureau said new home sales rose to a seasonally adjusted 307,000 units in September, after rising to 288,000 units in August. Analysts had expected the number of new home sales to rise to 300,000 units in September.

The report said that year-on-year, existing home sales rose by a seasonally adjusted 6.6% in September, up from 1.1% in August.

Meanwhile, separate data showed that U.S. core durable goods orders fell unexpectedly in September while durable goods orders rose more-than-expected.

The kiwi was also down against the euro with EUR/NZD gaining 0.07% to hit 1.8513.

Later Wednesday, the Reserve Bank of New Zealand was to announce its benchmark interest rate.

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