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Forex - NZD/USD dips amid reduced appetite for riskier assets

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Forexpros - The New Zealand dollar edged lower against its U.S. counterpart on Wednesday, amid ongoing concerns over the euro zone's sovereign debt crisis and after official data showed that producer input prices rose less-than-expected.

NZD/USD hit 0.8311 during late Asian trade, a daily low; the pair subsequently consolidated at 0.8342, shedding 0.2%.

The pair was likely to find support at 0.8179, the low of August 12 and short-term resistance at 0.8410, Tuesday's high.

German Chancellor Angela Merkel and French President Nicolas Sarkozy proposed a new council to improve the governance of the euro zone and planned to introduce a financial transaction tax in September.

But the two leaders fell short of increasing the region's bailout fund, which many feel is inadequate should the debt crisis spread to Italy, Spain or France.

They also rejected issuing euro bonds, saying that the bonds will not solve the single currency bloc's debt issues, disappointing investors who had been anticipating such an action.

Meanwhile, Statistics New Zealand said earlier that producer input prices rose 0.9% in the second quarter from the previous three months, below expectations for a 1.2% increase.

Producer output costs climbed 1.4% during the second quarter, above the expected 0.8% gain.

Producer input prices rose 2.2% in the previous quarter, while output costs advanced 1.7%.

Elsewhere, the kiwi was fractionally lower against its Australian cousin, with AUD/NZD easing up 0.08% to hit 1.2550.

Later in the day, the U.S. was to publish official data on producer price inflation, as well as government data on crude oil stockpiles.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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