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Forex - NZD/USD hits fresh daily high after poor U.S. housing data

Published 09/20/2010, 11:28 AM
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EUR/NZD
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Investing.com – New Zealand's dollar rose to a fresh daily high against its U.S. counterpart on Monday, after industry data showed that U.S. builder confidence in the market for newly built homes remained at an 18-month low.

NZD/USD hit 0.7322 during European afternoon trade, a fresh daily high; the pair subsequently consolidated at 0.7312, surging 0.77%.

The pair was likely to find support at 0.7237, last Friday's low and resistance at 0.7354, the high of September 15.

Earlier Monday, data showed that the U.S. National Association of Home Builders/Wells Fargo Housing Market Index remained at 13 in September, staying at its lowest level since March 2009.

Analysts had expected the NAHB housing market index to rise to 14 in September. A level above 50 on the index indicates a favorable outlook on home sales, below indicates a negative outlook.

Commenting on the report, NAHB chief economist David Crowe said, "The stall in the nation's housing market continues."

The kiwi was also up against the euro, with EUR/NZD shedding 0.53% to hit 1.7890.

Later in the day, New Zealand was to publish official data on visitor arrivals.

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