Shutterstock photo
Markets

Forex - NZD/USD near 7-month trough ahead of RBNZ statement

Shutterstock photo

Shutterstock photo

Investing.com -

Investing.com - The New Zealand dollar slipped against its U.S. counterpart on Wednesday, to trade close to a seven-month trough as markets eyed the Reserve Bank of New Zealand's upcoming policy statement.

NZD/USD hit 0.8232 during late Asian trade, the session low; the pair subsequently consolidated at 0.8238, down 0.10%.

The pair was likely to find support at 0.8219, Tuesday's low and a seven-month low and resistance at 0.8329, the high of September 8.

Expectations that the Federal Reserve is growing closer to raising interest rates have continued to support demand for the greenback.

The Fed was expected to cut its asset purchase program by another $10 billion at its upcoming policy meeting next week which would keep it on track for winding up the program in October, and to start raising interest rates sometime in mid-2015.

A study by the San Francisco Federal Reserve published on Monday indicated that Fed officials see rates rising earlier than markets expect.

Later in the day, the RBNZ was expected to leave interest rates on hold at 3.50%.

The kiwi was higher against the Australian dollar, with AUD/NZD shedding 0.39% to 1.1120.

Also Wednesday, the Westpac Banking Corporation said consumer sentiment in Australia declined by 4.6% this month, after a 3.8% rise in August.

Investing.com offers an extensive set of professional tools for the financial markets.

Read more News on Investing.com and download the new Investing.com apps for Android and iOS!

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.

Other Topics

ForEx