New Zealand dollar remained almost without change against its US counterpart on Tuesday, as demand for the US dollar was still underpinned by ongoing expectations that US central bank will reduce scale of asset purchases by the end of 2013.
NZD/USD fell to a session low at 0.7706 during the later phase of Asian trade, after which consolidation followed at higher levels around 0.7750. Support was likely to be found at June 24th low, 0.7684, while resistance was to be met at June 20th high, 0.7890.
Almost one week ago, on June 19th, FED Chairman Ben S. Bernanke said, that the US central bank will embark on a scale back of bond purchases by the end of this year and completely wind them down in the middle of 2014, if economic conditions were to meet FEDs objectives.
In attempt to calm the widespread expectation over FEDs plans, the president of the Federal Reserve Bank of Minneapolis, Narayana Kocherlakota, said on Monday that the central bank will stick to the course of continuing its bond purchases, until US unemployment rate was to decrease further.
Meanwhile, demand for the greenback was still underpinned, as fears arose, regarding financial stability in China. Chinese shares registered the largest decline on a daily basis on Monday in almost four years.
The United States was expected to release official data, regarding Durable Goods Orders, Consumer Confidence and New Home Sales later in the trading day.
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