Forex - NZD/USD slumps after IMF says kiwi overvalued
Investing.com
Published Apr 01, 2010 01:48AM ET
NZD/USD hit 0.7045 during the Asian trading session, a 3-day low; the pair subsequently consolidated around 0.7058, still shedding 0.73%. The pair was likely to find resistance at 0.7178, the high of March 17, and short-term support at 0.6961, the low of March 9.
The IMF said in a statement on Wednesday that the overvaluation of the currency "may be temporary and the exchange rate may depreciate as the interest rate differential narrows with eventual tightening by the U.S. Federal Reserve."
Meanwhile, the kiwi also tumbled versus sterling, with GBP/NZD shooting up 1.04% to hit 2.1591.
Also Thursday, the United States was set to publish an important weekly report on unemployment claims, and an industry group was due to publish a manufacturing purchasing managers' index for the country.
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Written By: Investing.com
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