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Forex - NZD/USD drops to 1-1/2 month lows on U.S. data

Published 07/28/2014, 03:00 AM
Updated 07/28/2014, 03:00 AM
Kiwi hits 1-1/2 month lows vs. greenback

Investing.com - The New Zealand dollar dropped to one-and-a-half month lows against its U.S. counterpart on Monday, as Friday's upbeat U.S. durable goods data continued to lend support to the greenback.

NZD/USD hit 0.8534 during late Asian trade, the pair's lowest since June 11; the pair subsequently consolidated at 0.8539, shedding 0.19%.

The pair was likely to find support at 0.8494, the low of June 10 and resistance at 0.8586, the high of July 25.

The greenback remained supported by better than expected data on U.S. durable goods orders for June.

The Commerce Department on Friday reported a rise of 0.7% in orders of long lasting goods such as machinery and electronic products, compared to forecasts of 0.5%.

The kiwi came under broad selling pressure last week after the Reserve Bank of New Zealand its benchmark interest rate to 3.50% from 3.25%, but signaled that rates will not go any higher this year.

Market participants were eyeing the U.S. employment report due later in the week and the upcoming Federal Reserve statement expected on Wednesday. Investors were also awaiting final data on U.S. second-quarter growth on Wednesday.

The New Zealand dollar was lower against its Australian counterpart, with AUD/NZD adding 0.17% to 1.1000.

Later in the day, the U.S. was to release data on pending home sales.

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