Forex - NZD/USD trims losses following Fonterra statement

Published 02/19/2013, 03:11 AM
NZD/USD
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NZD/JPY
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Investing.com -The New Zealand dollar trimmed losses against the U.S. dollar on Tuesday after Fonterra Group, the Auckland based dairy product exporter said none of its products were destroyed by China’s quarantine administration.

NZD/USD pulled back from 0.8402, the session low, to hit 0.8445 in late Asian trade, still down 0.08% for the day.

The pair was likely to find support at 0.8402, the session low and the pair’s lowest since February 13 and resistance at 0.8480, the high of February 4.

The New Zealand dollar hit session lows against the greenback earlier following reports that Chinese authorities destroyed milk powder imports from New Zealand.

But the New Zealand dollar pared back losses after Fonterra clarified that none of its products were destroyed.

Meanwhile, the Australian dollar was higher after minutes of the Reserve Bank of Australia’s February 5 policy meeting indicated that the bank would wait to assess the impact of recent rate cuts before deciding to cut rates again.

The RBA said that while the inflation outlook left scope to ease policy further, it would need to see clear indications of a slowdown in the economy.

The New Zealand dollar was lower against the yen, with NZD/JPY down 0.69% to 78.87.

The yen was broadly higher on Tuesday after Japanese Finance Minister Taro Aso said the government is not considering buying foreign bonds through a fund with the Bank of Japan, one day after Prime Minister Shinzo Abe said the idea was one option for monetary easing.



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