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Forex - NZD/USD edges up near 5-week highs despite N.Z data

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Investing.com -

Investing.com - The New Zealand edged higher against its U.S. counterpart on Tuesday, moving closer to Monday's five-week peak despite downbeat New Zealand business confidence data, as lower expectations for a U.S. rate hike in 2015 dampened demand for the greenback.

NZD/USD hit 0.6516 during late Asian trade, the session high; the pair subsequently consolidated at 0.6493, easing up 0.08%.

The pair was likely to find support at 0.6381, the low of October 2 and resistance at 0.6567, the high of August 25.

Data earlier showed that New Zealand's NZIER business confidence index fell to a four-year low of minus 14 in the third quarter from a reading of 5 in the three months to June.

Meanwhile, the greenback remained under pressure as weak U.S. jobs data on Friday underlined fears that a slowdown in global economic growth has spread to the U.S. economy and prompted investors to push back expectations on the timing of an initial rate hike by the Federal Reserve to early 2016.

On Monday, the Institute of Supply Management reported that its non-manufacturing purchasing managers's index fell to 56.9 in September from a reading of 59.0 the previous month. Analysts had expected the index to tick down to 57.5 last month.

The kiwi was lower against the Australian dollar, with AUD/NZD gaining 0.46% to 1.0962.

Also Tuesday, the Reserve Bank of Australia left its benchmark interest rate unchanged at 2.00% and added that any changes in monetary policy will be determined by "further information on economic and financial conditions to be received over the period ahead".

The central bank also said that "the available information suggests that moderate expansion in the economy continues".

Separately, official data showed that Australia's trade deficit widened to A$3.095 billion in August from A$2.792 billion in July, whose figure was revised from a previously estimated deficit of A$2.792 billion. Analysts had expected the trade deficit to narrow to A$2.550 billion in August.

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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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