New Zealand dollar traded slightly lower against its US counterpart on Wednesday, as investors expected the decision on monetary policy by the Federal Open Market Committee later in the day.
NZD/USD reached a session high at 0.7990 at 6:06 GMT, after which consolidation followed at 0.7981. Support was likely to be found at July 19th low, 0.7887, while resistance was to be encountered at June 17th high, 0.8100.
Earlier on Wednesday the National Bank of New Zealand reported that its business confidence indicator rose to a value of 52.8 in July from 50.1 in June, suggesting that optimism over business conditions in the country in the next 12 months strengthened. This business survey, encompassing almost 700 respondents, is closely related to manufacturing sector in New Zealand and is considered a vital benchmark for economic development.
Meanwhile, investors eyed the meeting on monetary policy by the FOMC amid uncertainty over the future of the Federal Reserve stimulus, as mixed data was released out of the United States recently. On Tuesday the Conference Board said that consumer confidence in the United States declined to 80.3 in July from 82.1 during the preceding month, while projections pointed that the indicator will record a lesser drop to a reading of 81.4. Another report by Standard & Poors and Case-Shiller said that the composite index of home prices advanced by 12.2% in the month of May on annual basis, slightly below the expected 12.4% rise. In April data showed a 12.1% advance.
Later in the day the United States was expected to publish data, regarding economic growth, ADP Employment Change, personal consumption expenditures and Chicago business survey on manufacturing.
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