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Forex - NZD/USD lower amid growth concerns, eyes on ECB

Published 09/03/2012, 03:04 AM
NZD/USD
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AUD/NZD
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Investing.com - The New Zealand dollar was lower against its U.S. counterpart on Monday, as sentiment was hit by fresh concerns over a global economic slowdown, while markets eyed upcoming comments by European Central Bank President Mario Draghi later in the day.

NZD/USD hit 0.7986 during late Asian trade, the daily low; the pair subsequently consolidated at 0.8014, falling 0.26%.

The pair was likely to find support at 0.7955, the low of July 6 and resistance at 0.8074, the high of July 5.

The kiwi came under pressure as concerns over China’s outlook for growth re-emerged, after data earlier showed that manufacturing activity in the world’s second largest economy contracted in August.

China is New Zealand’s second biggest export partner.

Markets were awaiting a speech by ECB President Draghi later in the day, amid speculation that the central bank is working on measures to help stabilize the euro zone's sovereign debt markets ahead of its upcoming meeting on September 6.

Meanwhile, the greenback remained under pressure after Federal Reserve Chairman Ben Bernanke reiterated last Friday that the central bank was ready to provide additional policy accommodation as needed to shore up growth.

The kiwi was higher against the Australian dollar with AUD/NZD slipping 0.22%, to hit 1.2817.

Also Monday, official data showed earlier that retail sales in Australia fell unexpectedly in July, ticking down 0.8% following a revised 1.2% increase the previous month.

Separately, industry data showed that job advertisements in Australia dropped by 2.3% in August, after a 0.8% fall the previous month.

Official data also showed that Australian company operating profits declined by 0.7% in the second quarter, disappointing expectations for a 1% rise and following a 3.7% drop in the previous quarter.

Trade looked likely to remain subdued on Monday, with no significant economic data releases on the calendar, while markets in the U.S. were to remain closed for the Labor Day holiday.


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