Forex - NZD/USD lower despite bullish business confidence data
Published Oct 07, 2013 11:15PM ET
In Asian trading Tuesday, NZD/USD fell 0.17% to 0.8291. The pair was likely to find support at 0.8246, the low of October 1 and resistance at 0.8351, the high of October 4.
Earlier Tuesday, the New Zealand Institute of Economic Research said its gauge of business confidence for the third quarter rose to 38 from 32 in the prior quarter, good for a 14-year high. On seasonally adjusted basis, the reading was 32 up from 30, the best reading since early 2010.
"A net 8 percent of firms said trading activity improved in the third quarter, and 30 percent expect further gains in the current quarter, today’s report showed. A net 12 percent of firms expect profits to increase this quarter after a net 8 percent reported a decline in the third quarter, Bloomberg reported, citing NZIER.
Still, traders were seen approaching riskier currencies with caution. An impasse among U.S. lawmakers and the White House over terms needed to create a spending package and reopen the government sent investors avoiding the dollar on Monday.
Market participants are growing increasingly worried that the Congressional stalemate risks going through October 17, the day Congress must raise the U.S. debt ceiling. The U.S. has never failed to raise the debt ceiling and by not doing so, risks the first ever default on its sovereign debt obligations. Moody’s Investors Service has said a U.S. default is unlikely.
Republican leadership is demanding the White House get tough on spending cuts, President Obama and Senate Democrats appear no more in the mood for compromise than their Republican counterparts.
Elsewhere, NZD/JPY fell 0.06% to 80.28 while AUD/NZD rose 0.08% to 1.1364.
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Written By: Investing.com
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