NZD/USD on seven-day lows on disappointing NZ manufacturing data, Fed minutes

New Zealand dollar fell to its lowest point during the past seven trading sessions against its US counterpart on Thursday, after a report showed that manufacturing activity in New Zealand slowed down in September.

NZD/USD fell to a session low at 0.8232 at 7:35 GMT, also the pairs lowest point since October 2nd, after which consolidation followed at 0.8242, sliding 0.69% for the day. Support was likely to be found at October 2nd low, 0.8194, while resistance was to be encountered at October 9th high, 0.8320.

It became clear that the index, gauging manufacturing activity in New Zealand, decreased to a reading of 54.3 in September from the revised down 57.1 in August (57.5 previously). Values above the key level of 50.0 are usually considered as an indication that activity in the sector has expanded. The more values distance from this level, the stronger outlook for economic development or recession appears to be.

Meanwhile, the greenback received a boost against peers after the minutes of FOMCs most recent policy meeting said that the majority of policymakers expressed their support of central bank’s intention to reduce the pace of its 85-billion-USD-per-month asset purchases this year. However, experts suggested that the bank will probably not make such a move at its meeting in October, as Chairman Ben Bernanke has not scheduled a press conference due to the partial US government shutdown. Most analysts expect that a possible scale back to Federal Reserve’s monetary stimulus could occur in December.

At the same time, US President Barack Obama officially nominated Fed Vice Chairman Janet Yellen for the post of bank’s Chairman. Yellen will be the first lady to take such a position in central bank’s 100-year history.

Elsewhere, the kiwi dollar was losing ground against the Aussie, with AUD/NZD cross rising 0.48% on a daily basis to trade at 1.1432 at 9:15 GMT. EUR/NZD pair was advancing 0.66% to trade at 1.6389 at 9:19 GMT. French industrial production was reported to have registered a lesser than projected gain in August. Output rose 0.2% in August on a monthly basis, after the 0.6% drop in July. Preliminary estimates pointed a 0.6% increase. Annual industrial production fell 2.9% in August, widening the 1.6% drop a month ago. Manufacturing production in the country expanded 0.3% in August compared to July, after it fell 0.8% during the preceding month. Analysts had anticipated a larger climb in August, 0.6%. Manufacturing of automobiles and other transportation vehicles climbed 8.6% in August, following the 6.9% decrease in July.