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Forex - NZD/USD edges higher, eyes on central banks

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Investing.com - The New Zealand dollar edged higher against its U.S. counterpart on Wednesday, as expectations for fresh easing measures by world central banks supported sentiment, although investors remained cautious ahead of this week's European Central Bank meeting.

NZD/USD hit 0.8341 during late Asian trade, the pair's highest since February 26; the pair subsequently consolidated at 0.8318, adding 0.11%.

The pair was likely to find support at 0.8256, Tuesday's high and resistance at 0.8353, the high of February 26.

Market sentiment was supported by prospects for ongoing monetary easing by the Federal Reserve and the Bank of Japan, as well as signs that the economic recovery in the U.S. is gaining momentum.

But investors remained cautious ahead of meetings by the ECB and the Bank of England on Thursday and U.S. data on nonfarm payrolls on Friday.

Concerns over political uncertainty in Italy also continued to linger, amid reports that Italian President Giorgio Napolitano is considering appointing a technocratic government after elections last month ended in a stalemate.

The kiwi was fractionally lower against the Australian dollar, with AUD/NZD edging up 0.09% to hit 1.2353.

Also Wednesday, official data showed that Australia's gross domestic product rose 0.6% in the fourth quarter, in line with expectations. The rate of expansion of the third quarter GDP was revised up to 0.7% from 0.5%.

Later in the day, the U.S. was to publish a report on ADP nonfarm payrolls and official data on factory orders.

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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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