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Forex - NZD/USD rises after data points

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Investing.com - " The New Zealand dollar traded higher against its U.S. rival during Wednesday's Asian session following a trio of important data points out of New Zealand.

In Asian trading Wednesday, NZD/USD rose 0.17% to 0.8379. The pair was likely to find support at 0.8193, the low of October 30 and resistance at 0.8338, the high of October 25.

Earlier Wednesday, Statistics New Zealand said the country's employment change rose 1.2% in the third quarter after a second-quarter increase of 0.4%. Economists expected a third-quarter increase of 0.6%.

New Zealand's unemployment rate fell to 6.2% in the third quarter from 6.4% in the prior quarter. Economists expected a third-quarter reading of 6.3%.

Statistics New Zealand added that New Zealand's labor cost index was unchanged at 0.4% last quarter. Economists expected a third-quarter reading of 0.5%.

Still, some traders view the kiwi as a candidate for price retrenchment in the coming weeks because of the country's widening current account deficit.

While markets still appear to be factoring in a rate hike from the Reserve Bank of New Zealand in early 2014, recent commentary from the central bank has been more dovish than some expected, indicating RBNZ may be inclined to keep rates at 2.5% longer than expected.

Additionally, the kiwi is still viewed as too strong, perhaps limiting RBNZ's rate-cutting ability over the medium-term.

Elsewhere, AUD/NZD fell 0.21% to 1.1352 after the Australian Bureau of Statistics said the country's trade deficit narrowed to AUD284 million in September from AUD693 million in August. Economists expected a September deficit of AUD500 million.

NZD/JPY rose 0.21% to 82.52.

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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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