New Zealand dollar traded steadily against its US counterpart on Thursday through the course of a light-volume trade, as main influence was caused by expectations for the Federal Reserve Bank to take action and scale back its Quantitative Easing soon.
NZD/USD pair reached a session high at 0.7806 at 3:05 GMT, highest point since July 2nd, after which consolidation followed at 0.7785. The cross added 0.03% for the day. Support was likely to be found at July 3rd low, 0.7710, while resistance was to be encountered at June 27th high, 0.7853.
Investors’ attention was on Friday’s non-farm payrolls report from the United States, as it could provide clues on whether a reduction of scale of stimulus by the Federal Reserve was at hand. On Wednesday payroll processor ADP reported that US private sector added 188 000 more jobs in June. Experts had projected an increase to 160 000 job positions, while in May economy added 134 000 jobs. Additionally, the number of people, who filed for unemployment assistance decreased in the week, ended on 28.06.2013, by 5 000 to 343 000. The ISM Non-Manufacturing Composite index in the United States surprisingly recorded a lower value in June, standing at 52.2, from 53.7 in May. Experts had predicted the indicator to have advanced to 54.0.
New Zealand dollar was lower against its Australian counterpart, as AUD/NZD advanced 0.19% to 1.1699. It became clear earlier that Building Approvals in Australia dropped by 1.1% in May on a monthly basis, mismatching forecasts of a 1.0% drop, while revised data in April stated a 9.5% increase, up from 9.1% previously.
On Thursday US markets will remain closed for the Independence day holiday, thus, trade will be with thin volumes.
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