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Forex - NZD/USD slips lower after weak N.Z. GDP data

Published 17/09/2015, 04:14 pm
NZD/USD
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EUR/NZD
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Investing.com - The New Zealand dollar slipped lower against its U.S. counterpart on Thursday, after data showed that the New Zealand economy grew at a slower pace than expected in the second quarter and as investors eyed the Federal Reserve's upcoming policy statement.

NZD/USD hit 0.6334 during late Asian trade, the session low; the pair subsequently consolidated at 0.6358, edging down 0.14%.

The pair subsequently consolidated at 0.6291, the low of September 15 and resistance at 0.6399, the high of September 10.

Statistics New Zealand reported on Thursday that the country's gross domestic productGDP rose 0.4% in the second quarter, confounding expectations for a 0.5% increase and after a growth rate of 0.2% in the three months to March.

On a yearly basis, New Zealand's GDP increased by 2.4% in the second quarter, below expectations for a 2.5% gain and down from a growth rate of 2.6% in the first quarter.

Meanwhile, investors remained cautious amid uncertainty over whether the Fed would hike short term interest rates for the first time in almost a decade on Thursday.

An increase in interest rates would boost the greenback by making it more attractive to yield-seeking investors.

Fed Chair Janet Yellen has said that an interest rate increase is data dependent but has also indicated that she expects to begin raising rates before the end of the year.

Data on Wednesday showed that U.S. consumer prices edged down by 0.1% last month, in line with forecasts following a 0.1% increase in July, while core consumer prices, which exclude food and energy costs, increased by 0.1%, also in line with the consensus forecast.

The kiwi was lower against the euro, with EUR/NZD adding 0.18% to 1.7765.

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