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Forex - NZD/USD holds steady after N.Z. current account data

Published 16/09/2015, 04:13 pm
Kiwi little changed vs. greenback in cautious trade
NZD/USD
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EUR/NZD
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Investing.com - The New Zealand dollar was steady against its U.S. counterpart on Wednesday, after the release of relatively positive current account data from New Zealand and as investors remained cautious ahead of the Federal Reserve's policy statement the next day.

NZD/USD hit 0.6365 during late Asian trade, the session high; the pair subsequently consolidated at 0.6356.

The pair was likely to find support at 0.6291, Tuesday's low and resistance at 0.6435, the high of September 9.

Statistics New Zealand reported on Wednesday that the country's current account fell into a deficit of NZ$1.22 billion in the second quarter from a surplus of NZ$0.66 billion in the three months to March.

Analysts had expected the current account to fall into a deficit of NZ$1.50 billion in the second quarter.

Meanwhile, markets were jittery amid concerns that mixed U.S. economic reports and recent volatility in global financial markets will prompt the U.S. central bank to refrain from hiking interest rates on Thursday.

Data on Tuesday showed that U.S. retail sales rose 0.2% in August, compared to expectations for an increase of 0.3%, while core retail sales, which exclude automobiles, added 0.1% last month, confounding expectations for a 0.2% rise.

A separate report showed that U.S. industrial production fell 0.4% in August, compared to expectations for a 0.2% downtick.

The kiwi was lower against the euro, with EUR/NZD adding 0.11% to 1.7751.

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