NZD/USD little changed ahead of US data

New Zealand dollar was almost without change versus its US rival on Friday, as yesterdays US GDP report still was providing support to the greenback, while markets awaited the last series of economic data out of the United States, scheduled this week.

NZD/USD reached a session high at 0.7795 at 7:02 GMT, while at 8:36 GMT the pair was trading at 0.7776, gaining 0.05% for the day. Support was likely to be found at August 28th low, 0.7745, while resistance was to be seen at August 29th high and also the pairs highest since August 27th, 0.7840.

Earlier today it became clear that New Zealands building permits dropped by 0.8% in July compared to June, confounding projections of a 1.3% increase, as the indicator plunged 4.3% in June compared to May, according to revised data.

In the mean time, the US currency received solid support on Thursday, after US Department of Commerce said that the revised Gross Domestic Product expanded by 2.5% during Q2 annually, exceeding expectations of a growth rate of 2.2%, while the preliminary estimate pointed a 1.7% expansion. Additionally, according to data by the Department of Labor, initial jobless claims in the United States dropped by 6 000 to 331 000 during the week ending on August 24th 2013, almost in line with experts’projections of a drop to 332 000 claims. The indicator remained close to its lowest point, recorded in October 2007.

Later in the trading day the United States will release reports on the index of core personal consumption expenditures, personal income, personal spending, the Chicago PMI and the final reading of University of Michigan Confidence index. Better than projected results are expected to strengthen the case for a reduced stimulus program by the Federal Reserve.

Elsewhere, the kiwi dollar was almost unchanged against the Aussie, with AUD/NZD cross dipped a mere 0.02% to trade at 1.1496 at 8:50 GMT.