NZD/USD better bid in Asia, upbeat fundamentals support

By FXStreet FXStreet (Mumbai) – The New Zealand dollar is seen defending mild gains against its American rival in the mid-Asian trades, keeping NZD/USD buoyed near the mid-point of 0.73 handle.

NZD/USD clings to 0.73 handle

Currently, the NZD/USD pair trades 0.14% higher at 0.6359, retracing from a spike to highs at 0.6374. The Kiwi shed a part of early gains and remains bid as the New Zealand benefitted from the release of June-quarter building data which beat market expectations.

Total building activity amounted to over $4 billion in the June quarter, up 8% on the same quarter in 2014, and the highest value ever recorded since the series began 50 years ago. The value of all building activity rose 1.6% over the quarter, beating market estimates of a 0.5% increase.

Moreover, the NZD/USD pair remains lifted with returning risk sentiment after Chinese markets rebounded somewhat yesterday while the recent upbeat Fonterra’s auction results also continues to support the Kiwi.

The Global Dairy Trade (GDT) Price index posted a sharp 10.9% gain early on Wednesday in New Zealand when compared with the previous price at Fonterra’s auction early on August 18.

Analysts at BNZ noted, “NZD kept a relatively cool head over the past 24 hours, …read more

Source:: FX Street