NZD/USD slips ahead of RBNZ interest rate decision

ForexNewsNow | Published on July 28, 2010 at 10:31 am

alan bollard forex analysis NZD online forexNEW YORK (Forex News Now) – The New Zealand dollar slid against its U.S. counterpart on Wednesday, extending recent losses, ahead of a key interest rate decision by the New Zealand’s central bank.

In New York afternoon currency trading, NZD/USD hit 0.728, down 0.72 percent on the day, after climbing slightly from a 2-day low of 0.7256.

The Reserve Bank of New Zealand was expected later in the day to raise its benchmark interest rate 25 basis points to 3 percent, in its second straight interest rate hike.

According to forex analysis, NZD/USD was likely to touch support around the low of July 22, 0.7096, and encounter immediate resistance around Tuesday’s high, 0.7396.

Also Wednesday, Commerce Department data showed that factor orders for U.S. durable goods unexpectedly slid in June, heightening fears that the U.S. economic recovery was faltering.

Elsewhere, the kiwi slumped versus the yen: NZD/JPY traded at 63.82, down 0.99 percent.

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