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Forex - NZD/USD steady amid euro zone uncertainty

Published 03/27/2012, 03:59 AM
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EUR/NZD
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Investing.com - The New Zealand dollar was steady against its U.S. counterpart on Tuesday, as markets were jittery after downbeat German economic data while concerns over a third round of monetary easing in the U.S. weighed on demand for the greenback.

NZD/USD hit 0.8240 during late Asian trade, the daily high; the pair subsequently consolidated at 0.8237, edging up 0.06%.

The pair was likely to find support at 0.8180, the low of March 13 and resistance at 0.8275, the high of March 9.

A report by showed earlier that an index of consumer climate for Germany fell unexpectedly in March, ticking down to 5.9 from 6.0 the previous month.

Investors also remained cautious amid fresh euro zone concerns after Italian Prime Minister Mario Monti warned over the weekend that the threat of contagion from Spain could cause the region’s debt crisis to flare up again.

Meanwhile, the U.S. dollar came under pressure after dovish comments by Federal Reserve Chairman Ben Bernanke at a meeting on Monday.

Bernanke said that further monetary accommodation is needed to bring about big gains in the U.S. jobs market, which he described as “far from normal,” despite a recent improvement.

Elsewhere, the kiwi was higher against the euro with EUR/NZD retreating 0.20%, to hit 1.6193.

Later in the day, the U.S. was to release a Standard & Poor’s/Case Shiller report on house price inflation report, as well as industry data on consumer confidence.



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