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Forex - NZD/USD slips lower in cautious trade

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Investing.com - The New Zealand dollar slipped lower against its U.S. counterpart on Tuesday, as U.S. fiscal concerns continued to weigh, while investors eyed the beginning of fourth quarter earnings season later in the day.

NZD/USD hit 0.8348 during late Asian trade, the day's low; the pair subsequently consolidated at 0.8354, slipping 0.20%.

The pair was likely to find support at 0.8311, the low of December 7 and resistance at 0.8396, the high of January 2.

Risk sentiment weakened after tepid U.S. nonfarm payrolls data last week dampened speculation that the Federal Reserve may end its easing program sooner than had been expected after the minutes from the Fed's December meeting showed that some policymakers considered ending the bank's quantitative easing program before the end of the year.

Investor confidence was also hit by concerns about continuing political wrangling in Washington over further budget cuts and raising the U.S. debt ceiling.

The kiwi was steady against the New Zealand dollar with AUD/NZD dipping 0.02%, to hit 1.2544.

Also Tuesday, official data showed that Australia's trade deficit widened unexpectedly in November, rising to AUD2.64 billion from a deficit of AUD2.44 billion the previous month.

Analysts had expected the trade deficit to narrow to AUD2.30 billion in November.

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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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