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Forex - NZD/USD higher after mixed New Zealand data

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Investing.com - The New Zealand dollar was higher against its U.S. counterpart on Thursday, after the release of mixed New Zealand economic reports, although expectations for the Federal Reserve to soon begin scaling back its stimulus progam still supported the greenback.

NZD/USD hit 0.7837 during late Asian trade, the session high; the pair subsequently consolidated at 0.7842, climbing 0.66%.

The pair was likely to find support at 0.7718, Wednesday's low and resistance at 0.7890, the high of June 20.

Official data earlier showed that New Zealand's trade surplus narrowed unexpectedly in May, falling to NZD71 million from a surplus of NZD174 million the previous month.

Analysts had expected the trade surplus to widen to NZD400 million last month.

A separate report showed that the ANZ business confidence index for New Zealand rose to 50.1 this month, from a reading of 41.8 in May.

The dollar remained supported by expectations that the Fed will start to unwind its asset purchase program later this year, despite a downward revision to U.S. first quarter growth on Wednesday.

The Commerce Department said U.S. gross domestic product expanded at an annual rate of 1.8% in the three months to March, below an earlier estimate of 2.4% growth. Economists had expected the rate of growth to remain unchanged at 2.4%.

The kiwi was higher against the euro with EUR/NZD retreating 0.51%, to hit 1.6618.

Later in the day, the U.S. was to release the weekly government report on initial jobless claims and a report on pending home sales.

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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.

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