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Forex - NZD/USD edges lower on New Zealand business confidence data

Published 03/27/2013, 03:50 AM
Updated 03/27/2013, 03:51 AM
NZD/USD
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EUR/NZD
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Investing.com - The New Zealand dollar edged lower against its U.S. counterpart on Wednesday, after the release of disappointing business confidence data from New Zealand, while concerns over the financial stability of the euro zone and ongoing political uncertainty in Italy weighed.

NZD/USD hit 0.8317 during late Asian trade, the session low; the pair subsequently consolidated at 0.8383, slipping 0.11%.

The pair was likely to find support at 0.8340, Tuesday's low and resistance at 0.8418, the high of February 25.

Data showed that the ANZ business confidence index for New Zealand fell to 34.6 in March from a reading of 39.4 the previous month.

Meanwhile, investors remained cautious amid fears the bailout deal for Cyprus could set a precedent for future bailouts in larger euro zone states with troubled financial sectors, with bank depositors and bond holders forced to foot the bill.

Elsewhere, talks in Italy aimed at forming a coalition government continued after general elections in late February resulted in a political stalemate, amid growing concerns that the country may have to return to the polls.

The kiwi was higher against the euro with EUR/NZD, down 0.17% to hit 1.5301.

Later in the day, the U.S. was to produce industry data in pending home sales and a government report on crude oil stockpiles.


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