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Forex - NZD/USD falls to 4-month lows in cautious trade

Published 20/01/2016, 06:25 pm
Kiwi hits multi-month lows vs. greenback amid growth worries

Investing.com - The New Zealand dollar fell to four-month lows against its U.S. counterpart on Wednesday, as renewed concerns over global economic growth continued to dampen market sentiment.

NZD/USD hit 0.6395 during late Asian trade, the pair’s lowest since September 30; the pair subsequently consolidated at 0.6370, retreating 0.68%.

The pair was likely to find support at 0.6331, the low of September 30 and resistance at 0.6485, Monday’s high.

Markets were still jittery after data on Tuesday showed that the annual rate of growth in China slowed to 6.8% in the three months to December from 6.9% in the previous quarter, matching forecasts.

The data indicated that the world’s second-largest economy is continuing to lose momentum, after falls in the nation’s currency earlier this year fueled fears over a China-led slowdown in global growth.

Investors were also cautious as oil prices dropped once again below $30 per barrel on Tuesday to the lowest level in 12 years after the International Energy Agency said that unseasonably warm weather and rising supply will keep the oil market oversupplied until at least late 2016.

The kiwi was higher against the Australian dollar, with AUD/NZD edging down 0.13% to 1.0758.

Earlier Wednesday, the Westpac Banking Corporation said that consumer sentiment in Australia dropped by 3.5% in January, after a 0.8% fall the previous month.

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