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Forex - NZD/USD edges higher but gains capped

By: Investing.com
Posted: 5/13/2013 6:15:00 AM
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Investing.com - The New Zealand dollar edged higher against its U.S. counterpart on Monday, but gains were capped as last week's strong U.S. data eased concerns over the country's outlook for growth.

NZD/USD hit 0.8318 during late Asian trade, the session high; the pair subsequently consolidated at 0.8309, adding 0.08%.

The pair was likely to find support at 0.8353, the low of May 9 and a more than one-month low and resistance at 0.8363, the high of March 22.

The greenback strengthened broadly on Friday as recent upbeat U.S. employment data fuelled optimism over an earlier-than-expected end to the Fed's USD85 billion a month asset purchase program.

Data on Thursday showed that showed that U.S. initial jobless claims fell to the lowest level since January 2008 in the week ending May 4.

Earlier this month official data showed that the U.S. economy added more jobs than forecast in April, pushing the unemployment rate to a more than four-year low of 7.5%.

In New Zealand, industry data earlier showed that the house price index rose 0.8% in April, after a 2.4% increase the previous month.

Separately, official data showed that industrial production in China rose 9.3% in April, below expectations for a 9.5% increase and following an 8.9% rise the previous month.

The weaker-than-expected data fuelled concerns that China's economic recovery was stalling. China is New Zealand's second biggest export partner.

Elsewhere, the kiwi was higher against the euro with EUR/NZD slipping 0.14%, to hit 1.5627.

Later in the day, the U.S. was to release official data on retail sales.


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