New Zealand dollar slid to lower levels against its US counterpart on Tuesday, as market players expected that a positive series of economic indicators out of the United States during the current week would prompt Fed to embark on a pare back of its stimulus.
NZD/USD fell to a session low at 0.7979 at 8:14 GMT, after which consolidation followed at 0.8001. Support was likely to be found at August 8th low, 0.7934, while resistance was to be met at August 12th high, 0.8058.
The kiwi decreased for a second day in a row, after last week it registered its largest weekly increase since 2011.
Meanwhile, the US dollar regained positions against most of its peers ahead of the retail sales report, scheduled for release out of the United States today, which may provide clues that economic recovery was on track. The greenback was pressured last week, after the disappointing non-farm payrolls report on August 2nd, which stated US economy added fewer than anticipated job positions during July. This made market players reassess their expectations, regarding the timing of Fed’s bond purchase pare back.
Later in the day, the United States was to publish data, regarding also business inventories and index of import prices, while later in the week reports on inflation, industrial production, housing starts and consumer confidence were expected.
Elsewhere, the kiwi dollar was trading with little change against the Australian currency, as AUD/NZD cross ticked up 0.04% to 1.1427 at 9:04 GMT.
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