Forex - NZD/USD edges lower amid E.Z. uncertainty
Investing.com
Published Jun 07, 2012 03:04AM ET
NZD/USD hit 0.7725 during late Asian trade, the daily low; the pair subsequently consolidated at 0.7693, falling 0.18%.
The pair was likely to find support at 0.7621, the low of May 17 and resistance at 0.7796, the high of May 15.
Markets were awaiting the outcome of a highly-anticipated Spanish 10 year bond auction later in the day, after Treasury Minister Cristobal Montoro said that financial markets were effectively closed to Spain because of the current high level of the country’s borrowing costs.
Sentiment remained vulnerable after European Central Bank President Mario Draghi on Wednesday disappointed market expectations for fresh easing measures and said there were downside risks to the European economy, stemming from the debt crisis in the region.
Investors were also eyeing a Congressional testimony by Federal Chairman Ben Bernanke about the state of the U.S. economy, with hopes fresh stimulus measures will be announced.
On Wednesday, Fed Vice-Chairman Janet Yellen laid out the case for more easing to bolster a fragile economy as financial turmoil mounts in the euro zone. Yellen’s comments were echoed by Atlanta Fed President Dennis Lockhart, saying his level of concern has risen since the U.S. central bank’s April meeting.
Elsewhere, the kiwi was lower against the Australian dollar with AUD/NZD rising 0.30%, to hit 1.2915.
Also Thursday, official data showed that Australia’s economy added 38,900 jobs in May, beating expectations for a 2,200 decline, while the country’s unemployment rate ticked up to 5.1% from, in line with expectations.
Later in the day, the U.S. was to release government data on initial unemployment claims, while Fed Chairman Ben Bernanke was to appear before the Joint Economic Committee, in Washington.
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Written By: Investing.com
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