Forex Pros – The New Zealand dollar was down against its U.S. counterpart on Wednesday, after remarks by the country’s finance minister raised fears that the country could be in a double-dip recession.
NZD/USD hit 0.7706 during late Asian trade, the daily low; the pair subsequently consolidated at 0.7704, shedding 0.58%.
The pair was likely to find support at 0.764, the low of January 26 and resistance at 0.7785, Tuesday’s high.
Earlier in the day, Minister of Finance Bill English told the New Zealand Parliament’s Finance and Expenditure Committee there was a possibility that gross domestic product in the fourth quarter had contracted compared with the previous quarter.
“It is possible because you are talking about small numbers…clearly there are some bumps and clearly the economy hasn’t been pumping along the way that 12 months ago we thought it would be by now,” English said.
A contraction in the fourth quarter would put the nation back into a technical recession as third quarter GDP contracted 0.2%.
The kiwi was also down against the euro, with EUR/NZD advancing 0.61% to hit 1.7685.
Later in the day, the head of the U.S. Federal Reserve, Ben Bernanke was to testify before the Budget Committee in Washington.
ForexPros.com
