Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Forex - Kiwi falls against stronger greenback

Published 02/01/2016, 02:31 AM
Updated 02/01/2016, 02:31 AM
Kiwi loses ground vs. greenback after China PMI

Kiwi loses ground vs. greenback after China PMI

Investing.com - The New Zealand dollar fell against its U.S. counterpart on Monday, as demand for the greenback remained broadly supported by upbeat U.S. growth data and the Bank of Japan’s decision to adopt negative interest rates.

NZD/USD hit 0.6450 during late Asian trade, the pair’s lowest since February 28; the pair subsequently consolidated at 0.6467, slipping 0.25%.

The pair was likely to find support at 0.6417, the low of february 28 and resistance at 0.6557, the high of February 29.

The greenback remained supported after the BoJ’s unexpected decision to cut its deposit rate into negative territory as part of an ongoing effort to combat deflation.

The move highlighted the diverging monetary policy path between the Federal Reserve and other world central banks.

In addition, data on Friday showed that the U.S. economy grew at an annual rate of 0.7% in the fourth quarter, compared to forecasts for growth of 0.8% after 2% growth in the third quarter.

The U.S. economy grew 2.4% in 2015 the Commerce Department said, matching similar growth in 2014.

Meanwhile, data on Monday showed that China’s official manufacturing purchasing managers’ index ticked down to 49.4 in January from 49.7 the previous month, compared to expectations for a slip to 49.6.

China is New Zealand’s second biggest export partner.

The kiwi was steady against the Australian dollar, with AUD/NZD at 1.0927.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.