Investing.com - The New Zealand dollar was lower against its U.S. counterpart on Thursday, as markets were jittery following comments by Federal Reserve Chairman Ben Bernanke and after the European Central Bank’s loan operation.
NZD/USD hit 0.8330 during late Asian trade, the pair’s lowest since February 27; the pair subsequently consolidated at 0.8327, falling 0.17%.
The pair was likely to find support at 0.8294, the low of February 3 and resistance at 0.8382, the high of February 17.
In testimony to Congress on Wednesday, Bernanke acknowledged the recent improvement in the labor market and said that higher oil prices could push up inflation. However, Bernanke also said the central bank was prepared to adjust the balance sheet “as appropriate” to support the economic recovery.
Meanwhile, investors remained cautious after the ECB allotted EUR529 billion in three-year loans to European lenders on Wednesday, after receiving bids from 800 banks, significantly more than in the bank’s first long term refinancing late last year.
The high uptake on the operation sparked concerns that banks in the region expect liquidity pressures to continue.
Elsewhere, the kiwi was lower against the Australian dollar with AUD/NZD adding 0.19%, to hit 1.2885.
Also Thursday, official data showed that building approvals in Australia rose far less-than-expected in January, ticking up 0.9%, while private capital expenditure fell unexpectedly in the fourth quarter by 0.3%.
Later in the day, the U.S. was to release government data on unemployment claims, while the Institute for Supply Management was to produce a report on manufacturing activity. In addition, Ben Bernanke was due to testify for a second day before Congress.
NZD/USD hit 0.8330 during late Asian trade, the pair’s lowest since February 27; the pair subsequently consolidated at 0.8327, falling 0.17%.
The pair was likely to find support at 0.8294, the low of February 3 and resistance at 0.8382, the high of February 17.
In testimony to Congress on Wednesday, Bernanke acknowledged the recent improvement in the labor market and said that higher oil prices could push up inflation. However, Bernanke also said the central bank was prepared to adjust the balance sheet “as appropriate” to support the economic recovery.
Meanwhile, investors remained cautious after the ECB allotted EUR529 billion in three-year loans to European lenders on Wednesday, after receiving bids from 800 banks, significantly more than in the bank’s first long term refinancing late last year.
The high uptake on the operation sparked concerns that banks in the region expect liquidity pressures to continue.
Elsewhere, the kiwi was lower against the Australian dollar with AUD/NZD adding 0.19%, to hit 1.2885.
Also Thursday, official data showed that building approvals in Australia rose far less-than-expected in January, ticking up 0.9%, while private capital expenditure fell unexpectedly in the fourth quarter by 0.3%.
Later in the day, the U.S. was to release government data on unemployment claims, while the Institute for Supply Management was to produce a report on manufacturing activity. In addition, Ben Bernanke was due to testify for a second day before Congress.