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Forex - NZD/USD lower as data points loom

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Investing.com - The New Zealand dollar gave up ground to its U.S. counterpart in Asian trading Monday as risk appetite appeared following the U.S. jobs report last Friday and in advance of some New Zealand data points due out this week.

In Asian trading Monday, NZD/USD fell 0.24% to 0.8298. The pair is likely to find support at 0.8212, Friday's low and resistance at 0.8392, Wednesday's high.

The pair jumped to 0.8392 last Wednesday amid elevated risk appetite following passage of a fiscal cliff resolution in the U.S., but traders locked in profits on the kiwi and will now turn their attention to the looming debate on the U.S. debt ceiling and a couple of data points expected out of New Zealand later this week.

U.S. policymakers must now turn their attention to addressing the debt ceiling. The debt ceiling refers to the amount of debt the U.S. can carry at any given time and if it is not raised, riskier assets could be punished as another downgrade to the U.S. credit rating becomes probable.

Following the contentious fiscal cliff debate, markets may be anticipating more of the same when it comes to the debt ceiling. Congressional Republicans have already signaled they will not move forward with a debt ceiling plan unless they secure a commitment from President Obama to significantly reduce government spending.

On Tuesday, New Zealand is scheduled to release official data on building consents, a leading indicator of future construction activity. On Wednesday, the country will release official data on the trade balance, the difference in value between imports and exports.

Earlier in Monday's Asian session, Westpac Banking Corp. said a recovering Chinese economy, which has triggered higher iron ore prices, may send NZD/USD to 0.8400 this week.

Elsewhere, AUD/NZD gained 0.25% to 1.2632 while NZD/JPY lost 0.3% to 73.11. EUR/NZD added 0.08% to 1.5730.

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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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