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Forex - NZD/USD rises in risk-on trade

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Investing.com -

Investing.com - The New Zealand dollar rose against its U.S. counterpart on Tuesday, as news of stimulus measures by the European Central Bank continued to support market sentiment, although demand for the greenback also remained strong.

NZD/USD hit 0.8524 during late Asian trade, the session high; the pair subsequently consolidated at 0.8517, rising 0.27%.

The pair was likely to find support at 0.8422, the low of June 5 and resistance at 0.8568, the high of May 28.

Market sentiment improved after the ECB unveiled last week a package of measures to avert the threat of persistently low inflation in the euro area.

Meanwhile, demand for the greenback remained supported after U.S. employment data released last Friday fuelled further optimism over the strength of the job market's recovery.

The Department of Labor reported that the U.S. economy added 217,000 jobs last month, just under expectations for jobs growth of 218,000, while the unemployment rate remained unchanged at a five-and-a-half year low of 6.3%.

The kiwi was higher against the Australian dollar, with AUD/NZD edging down 0.14% to 1.1000.

Also Tuesday, the National Australia Bank reported that its business confidence index rose to 7 last month, from a reading of 6 in April.

A separate report showed however that job advertisements in Australia dropped 5.6% in May, after a 1.9% increase in April, whose figure was revised down from a previously estimated 2.2% gain.

Data also showed that home loans in Australia were flat in April, compared to expectations for a 0.2% rise, after a 0.8% fall in March, whose figure was revised up from a previously estimated 0.9% decline.

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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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