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Forex - NZD/USD slides as risk aversion escalates

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Forexpros - The New Zealand dollar was down against its U.S. counterpart on Wednesday, as concerns over the outlook for global growth dampened investor demand for riskier assets.

NZD/USD hit 0.8267 during late Asian trade, the daily low; the pair subsequently consolidated at 0.8277, tumbling 0.99%.

The pair was likely to find support at 0.8157, Monday's low and a seven-day low and resistance at 0.8424, the high of August 17.

Market sentiment was dented after U.S. data showed Tuesday that new home sales fell to their lowest level in five months in July, while the Richmond Fed's manufacturing index tumbled in August.

The Commerce Department said that new home sales fell 0.7% to a 298,000 annual rate, from 312,000 in the preceding month. Analysts had expected new home sales to fall to 310,000 last month.

The kiwi was also lower against its Australian cousin, with AUD/NZD rising 0.34% to hit 1.2632.

Also Wednesday, official data showed that New Zealand posted a trade surplus in July, the first for the month in 20 years, as exports exceeded imports by NZD129 million from a revised NZD197 million in June.

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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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