Topic: COZfx: NZD/USD steady as market sentiment recovers
COZforex: The New Zealand dollar was steady against its US counterpart on Tuesday, as sentiment mildly recovered after Russian President Vladimir Putin ordered troops engaged in military exercises back to their bases.
NZD/USD hit 0.8388 amid late Asian trade, the session low; the pair subsequently consolidated at 0.8375, easing up 0.06%. COZ senior foreign exchange risk investment trader Desmond Doyle said, NZD/USD was likely to find support at 0.8293, the low of February 27 and resistance at 0.8426, the high of February 28.
Market sentiment improved after a report that President Putin had ordered troops engaged in military exercises close to Ukraine’s borders back to base after the exercises concluded. But investors remained cautious after President Barack Obama said the US was considering economic sanctions to "isolate Russia".
Also Tuesday, the Reserve Bank of Australia held its benchmark interest rate at a record low 2.5%, in a widely expected move.
Commenting on the decision, RBA Governor Glenn Stevens said that housing prices "have increased significantly" and that the Aussie "remains high by historical standards."
Separately, official data showed that building approvals in Australia rise 6.8% in January, compared to expectations for a 2% increase. Building approvals in December were revised to a 1.3% drop from a previously estimated 2.9% decline.
Data also showed that Australia's current account deficit narrowed to A$10.1 billion in the fourth quarter, from A$12.5 billion in the three months to September, whose figure was revised from a previously estimated A$12.7 billion deficit.
(COZ forex UK)