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Forex - NZD/USD tumbles to 1-week low on growth concerns

Published 09/05/2011, 03:21 AM
NZD/USD
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AUD/NZD
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Investing.com – The New Zealand dollar tumbled to a one-week low against its U.S. counterpart on Monday, as concerns over the outlook for global growth weighed after Friday’s bleak U.S. employment data.

NZD/USD hit 0.8397 during late Asian trade, the pair’s lowest since August 29; the pair subsequently consolidated at 0.8402, tumbling 0.89%.

The pair was likely to find support at 0.8268, the low of August 26 and resistance at 0.8467, the high of August 29.

Data on Friday showed that the U.S. economy added no new jobs in August for the first time in almost a year. Economists had expected non-farm payrolls to rise by 74,000 last month. The jobless rate remained unchanged at 9.1%.

The data added to expectations that the Federal Reserve will embark on a third round of monetary stimulus, to shore up faltering U.S. growth.

Elsewhere, ongoing concerns that the euro zone sovereign debt crisis was worsening weighed on market sentiment.

The kiwi was also lower against its Australian cousin, with AUD/NZD easing up 0.15% to hit 1.2570.

Earlier Monday official data showed that Australian company profits rose sharply in the second quarter, due to the country’s mining boom.

The Australian Bureau of Statistics said companies' gross operating profits rose 6.7% to a seasonally adjusted AUD67.54 billion in the second quarter. Mining firms led the surge with profits climbing 15.2% to AUD24.56 billion.

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