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Forex - NZD/USD moves lower amid growth concerns

Published 02/02/2016, 02:23 AM
Updated 02/02/2016, 02:23 AM
Kiwi slides lower against greenback, China PMI still weighs

Investing.com - The New Zealand dollar was lower against its U.S. counterpart on Tuesday, as concers over an economic slowdown in China continued to weigh, although the greenback’s gains were limited.

NZD/USD hit 0.6514 during late Asian trade, the session low; the pair subsequently consolidated at 0.6521, sliding 0.41%.

The pair was likely to find support at 0.6446, Monday’s low and resistance at 0.6592, the high of January 13.

Investors remained cautious amid ongoing concerns over global economic growth after data on Monday showed that manufacturing activity in China contracted for a sixth straight month in January.

China is New Zealand’s second biggest export partner.

Meanwhile, sentiment on the greenback remained fragile after data showed that manufacturing activity in the U.S. contracted again in January, holding near levels not seen since July 2009, and that U.S. consumer spending was flat in December.

The kiwi was higher against the Australian dollar, with AUD/NZD slipping 0.13% to 1.0852.

In a widely expected move, the Reserve Bank of Australia held its benchmark interest rate at 2.00% on Tuesday.

In a statement following the decision, the central bank said however that subdued inflation may “provide scope for easier policy”.

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