Forex Pros – The New Zealand dollar pared gains against its U.S. counterpart on Wednesday, tracking the Australian dollar lower, following remarks by the Australian prime minister on a controversial mining tax.
NZD/USD retreated from 0.7562, the daily high, to hit 0.7529 during late Asian trade, gaining 0.14%.
The pair was likely to find support at 0.7503, Tuesday’s low and a two-month low and resistance 0.7585, Tuesday’s high.
Earlier in the day, Australian Prime Minister Julia Gillard said she would not alter the controversial proposed mining tax, despite Treasury figures showing the modified version would collect AUD60 billion less than originally anticipated.
Australia’s government was forced to revise it’s proposed “resource super-profits tax” last year, following heavy lobbying by the industry.
Meanwhile, the kiwi was down against the euro, with EUR/NZD rising 0.32% 1.7992.
Later in the day, the U.S. was to publish official data on producer price inflation, as well as reports on building permits, housing starts and industrial production.
In addition, the Federal Reserve was to publish the minutes of its most recent monetary policy committee meeting.
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