COZforex: The New Zealand dollar was trading close to a 6 days low against its US counterpart, as investors continued to eye US budget talks with hopes a deal will be hammered out before the end of the year.

NZD/USD hit 0.8378 during late Asian trade, the currency pair's lowest since December 11; the pair subsequently consolidated at 0.8404, slipping 0.11%. COZforex senior currency strategist Ian • Quigley predicts that the currency pair was likely to find support at 0.8335, the low of December 11 and resistance at 0.8452, Tuesday's high.

Market sentiment remained mildly supported by hopes that an agreement to avoid the US fiscal cliff can be reached ahead of the January 1 deadline.

Negotiations aimed at avoiding the automatic tax hikes and spending cuts which investors fear could derail the US recovery, have intensified in recent days, raising hopes that US lawmakers will reach an agreement by the end of the year.

The kiwi was almost unchanged against the Australian dollar with AUD/NZD edging 0.06% higher, to hit 1.2526.
Later in the day, the US was to publish government data on building permits, housing starts and crude oil stockpiles.

COZ forex UK