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Forex - NZD/USD lower on BoJ intervention, risk aversion

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Forexpros - The New Zealand dollar tumbled to a 12-day low against its U.S. counterpart on Thursday, after Japan stepped in the foreign exchange market to prevent further appreciation of the yen, while market uncertainty saw investors shun riskier assets.

NZD/USD hit 0.8495 during late Asian trade, the pair's lowest since July 19; the pair subsequently consolidated at 0.8516, tumbling 1.37%.

The pair was likely to find support at 0.8429, the low of July 19 and resistance at 0.8677, Wednesday's high.

Japanese Finance Minister Yoshihiko Noda confirmed earlier that the country intervened to curb the yen's gains for the first time since March, sending the yen sharply lower against all major currencies.

In addition, the Bank of Japan announced additional monetary easing in order to support the Finance Ministry's intervention to weaken the yen.

Elsewhere, the outlook for global growth remained clouded after a report on Wednesday showed activity in the U.S. services sector declined unexpectedly in July, falling to the lowest level since February 2010.

A separate report showed that U.S. factory orders declined more-than-expected in June.

Meanwhile, the kiwi was sharply higher against the yen, with NZD/JPY jumping 1.70% to hit 67.66.

Later Thursday, the U.S. was to publish government data on initial jobless claims.

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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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