Forexpros – The New Zealand dollar edged lower against its U.S. counterpart on Wednesday, as investors remained cautious amid sustained euro zone debt concerns while Tuesday’s strong U.S. manufacturing data supported the greenback.
NZD/USD hit 0.8128 during late Asian trade, the daily low; the pair subsequently consolidated at 0.8146, edging down 0.08%.
The pair was likely to find support at 0.8097, the low of April 24 and resistance at 0.8187, the high of April 23.
The greenback remained supported after the Institute for Supply Management said Tuesday that its index of manufacturing activity rose to 54.8 from 53.4 in March, defying expectations for a decline to 53.0.
The robust data offset concerns that the economic recovery in the U.S. is losing momentum in the wake of a string of recent disappointing data and dampened speculation over the possibility of a third round of easing by the Federal Reserve.
Investors remained cautious ahead of weekend elections in Greece and France and the European Central Bank’s policy meeting on Thursday.
Elsewhere, the kiwi was lower against the Australian dollar with AUD/NZD adding 0.11%, to hit 1.2688.
Later in the day, the U.S. was to produce a report on non-farm employment change, followed by government data on factory orders and crude oil stockpiles.
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