WSJ:New Zealand Dollar Tad Weaker Late; Eyes on EU Summit
WELLINGTON--The New Zealand dollar was slightly weaker late Monday in a subdued session ahead of the European Union summit later this week.
"It's been pretty quiet and there's not much local data. It's found it difficult to push any higher" but is hovering around the 200-hour moving average, said ANZ Foreign Exchange Manager Murray Hindley. He said the local unit was likely to remain fairly rangebound with initial resistance at US$0.7885 and support at US$0.7840.
Westpac Bank's "fair value indicators, bearish technicals and probable disappointment at this week's European Council meeting all argue for lower NZD/USD during the next few weeks," said Senior Market Strategist Imre Speizer in a report.
Speizer said there is some support at US$0.7650 but US$0.7370 should eventually be tested. He noted that New Zealand data flow this week is "of minor importance," including May trade figures and the National Bank of New Zealand's business outlook survey for June.
"Far more important will be the Eurocouncil meeting on Thursday and Friday," he said.
Government bonds ended slightly higher in tepid trading. A local bond trader said the market was drifting as investors await new headlines.
