NZD/USD little changed

New Zealand dollar was trading almost without change against the greenback in quiet trade on Friday, as uncertainty over the future of Federal Reserve Banks easing program continued to weigh on the US currency.

NZD/USD reached a session high at 0.8019 at 6:32 GMT, after which the pair consolidated at 0.8012, up by a mere 0.01%. Support was likely to be received at August 1st low, 0.7853, while resistance was to be encountered at August 8th high, 0.8045.

New Zealand dollar received certain support earlier on Friday, following the release of industrial output report out of China, which submitted signals for stabilization of country’s economy. The National Bureau of Statistics in China said that industrial production in the country rose by 9.7% during July 2013 compared to July 2012, while a median estimate pointed an 8.9% increase. The result showed improvement in comparison with a month ago, when the index of production advanced 8.9%. A separate report revealed that Chinese index of consumer prices increased by 2.7% during July on annual basis, which, however, remained below the government’s 2013 objective of a 3.5% inflation for a seventh month in a row. Chinese retail sales advanced 13.2% in July from one year earlier. China is New Zealands second largest export partner.

Meanwhile, the US dollar came under pressure, as recent economic data from the United States fueled the uncertainty over the future of Federal Reserve’s monthly asset purchases. Chicago Federal Reserve Bank Chairman Charles Evans said that he would not rule out the withdrawal of central bank’s stimulus measures at the bank’s meeting in September. His comments were similar to those made by Cleveland Fed President Sandra Pianalto, who has always voted with the majority during her 10 years on the Federal Open Market Committee (FOMC).

Elsewhere, the kiwi, as New Zealand dollar is also known, was trading lower against the Australian currency, as AUD/NZD cross advanced 0.41% to 1.1421 at 8:39 GMT.