Investing.com - The New Zealand dollar fell to a two-week low against its U.S. counterpart on Thursday, as the minutes of the Federal Reserve’s latest policy meeting disappointed expectations for further easing, sending the greenback broadly higher.
NZD/USD hit 0.7914 during late Asian trade, the pair’s lowest since June 29; the pair subsequently consolidated at 0.7907, shedding 0.72%.
The pair was likely to find support at 0.7867, the low of June 26 and resistance at 0.7984, the high of June 20.
In the minutes of its June policy-setting meeting, the Fed indicated that the U.S. economy would have to worsen further before the central bank implements additional easing measures.
While a few policymakers said the bank should ease policy to move the economy toward its targets for full employment and stable prices, others indicated that more action could be warranted if growth slows, risks intensified or if inflation seemed likely to fall “persistently” below their goal.
Meanwhile, risk sentiment also remained under pressure after Spanish Prime Minister Mariano Rajoy announced on Wednesday EUR65 billion of new austerity measures, in an effort to meet new budget-deficit targets agreed with euro zone partners.
Market analysts warned that the fresh austerity measures were likely to drag Spain’s economy deeper in to a recession.
Elsewhere, the kiwi was higher against the Australian dollar with AUD/NZD falling 0.14%, to hit 1.2854.
Also Thursday, official data showed that the Australian economy shed 27,000 jobs in June, disappointing expectations for a 200 increase and following a 27,800 rise the previous month.
Australia’s unemployment rate rose to 5.2%, in line with expectations.
A separate report by the Melbourne Institute showed that inflation expectations for July rose to 3.3% from 2.3% the previous month, above the Reserve Bank of Australia’s target of 2-3%.
Later in the day, the U.S. was to release government data on unemployment claims and official data on import prices.
NZD/USD hit 0.7914 during late Asian trade, the pair’s lowest since June 29; the pair subsequently consolidated at 0.7907, shedding 0.72%.
The pair was likely to find support at 0.7867, the low of June 26 and resistance at 0.7984, the high of June 20.
In the minutes of its June policy-setting meeting, the Fed indicated that the U.S. economy would have to worsen further before the central bank implements additional easing measures.
While a few policymakers said the bank should ease policy to move the economy toward its targets for full employment and stable prices, others indicated that more action could be warranted if growth slows, risks intensified or if inflation seemed likely to fall “persistently” below their goal.
Meanwhile, risk sentiment also remained under pressure after Spanish Prime Minister Mariano Rajoy announced on Wednesday EUR65 billion of new austerity measures, in an effort to meet new budget-deficit targets agreed with euro zone partners.
Market analysts warned that the fresh austerity measures were likely to drag Spain’s economy deeper in to a recession.
Elsewhere, the kiwi was higher against the Australian dollar with AUD/NZD falling 0.14%, to hit 1.2854.
Also Thursday, official data showed that the Australian economy shed 27,000 jobs in June, disappointing expectations for a 200 increase and following a 27,800 rise the previous month.
Australia’s unemployment rate rose to 5.2%, in line with expectations.
A separate report by the Melbourne Institute showed that inflation expectations for July rose to 3.3% from 2.3% the previous month, above the Reserve Bank of Australia’s target of 2-3%.
Later in the day, the U.S. was to release government data on unemployment claims and official data on import prices.