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Forex - NZD/USD edges higher as risk appetite firms

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Forexpros - The New Zealand dollar edged higher against its U.S. counterpart on Monday, climbing to a three-day high as risk appetite firmed after better-than-expected Japanese economic data and strong U.S. retail sales figures helped ease concerns over the global economy.

NZD/USD hit 0.8389 during late Asian trade, the highest since August 10; the pair subsequently consolidated at 0.8366, gaining 0.52%.

The pair was likely to find support at 0.8179, last Friday's low and resistance at 0.8431, the high of August 8.

Preliminary data released earlier in the day showed that Japan's economy contracted by 0.3% in the second quarter, or 1.3% on an annualized basis.

Analysts had expected Japan's economy to contract by 0.9% in the quarter, or 2.5% on an annualized basis.

Meanwhile, government data released Friday showed that U.S. retail sales rose by 0.5% in July, the biggest gain in four months.

Markets were also awaiting Tuesday's meeting between German Chancellor Angela Merkel and French President Nicolas Sarkozy, to further asses the euro zone's debt crisis and how officials plan to handle escalating threats of contagion.

The kiwi was also higher against the Japanese yen, with NZD/JPY climbing 0.85% to hit 64.34, after Japanese Finance Minister Yoshihiko Noda said that he will continue to "closely watch the markets and take bold action if it becomes necessary."

Later in the day, the U.S. was to produce official data on manufacturing activity in New York State and a report on the balance of domestic and foreign investment in the U.S.

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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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