Forex – NZD/USD edges lower, eyes on Yellen testimony


Kiwi slips lower vs. greenback ahead of Yellen speechKiwi slips lower vs. greenback ahead of Yellen speech – The New Zealand dollar edged lower against its U.S. counterpart on Tuesday, as markets were jittery ahead of highly anticipated comments by Federal Reserve Chairwoman Janet Yellen.

NZD/USD hit 0.8788 during late Asian trade, the pair’s lowest since July 9; the pair subsequently consolidated at 0.8787, falling 0.22%.

The pair was likely to find support at 0.8748, the low of July 8 and resistance at 0.8836, the high of July 10.

Investors remained cautious before Fed Chairwoman Janet Yellen testifies before Congress on Tuesday and Wednesday.

In the minutes of the Federal Reserve’s June policy meeting released last week, the U.S. central bank predicted an October close to its bond-buying stimulus program but did not hint at a timetable as to when interest rates may begin to rise afterwards.

The kiwi was steady against the Australian dollar, with AUD/NZD dipping 0.06% to 1.0662.

Also Tuesday, the Reserve Bank of Australia reiterated, in the minutes of its July policy meeting, that it expects a period of stable interest rates as they “are working to support demand.”

The RBA added that the level of the Australian dollar “remained high by historical standards” and was “offering less assistance than it otherwise might in achieving balanced growth in the economy.”

Later in the day, the U.S. was to release data on retail sales, as well as data on import prices, business inventories and manufacturing activity in the Empire state.

Source By Breaking News Website | BreakingNews.WS