13/01/2015 Daily Current Updates of I Forex

GBP/USD slides tonearly 18-month lows in quiet trade

The pound slid to nearly 18-month lows against the U.S. dollar in quiet trade on Monday, as demand for the greenback remained broadly supported despite Friday's downbeat U.S. average earnings data.

GBP/USD hit 1.5099 during European morning trade, the session low; the pair subsequently consolidated at 1.5120, shedding 0.25%.

Cable was likely to find support at 1.5032, the low of January 8 and an 18-month low

and resistance at 1.5337, the high of January 5.

Average earnings fell by 0.2% last month and were up by only 1.7% from a

year earlier.

Weakness in earnings prompted investors to take profits in the dollar, as markets pushed back expectations for the first hike in U.S. interest rates to late-2015. The pound had found some support on Friday, after the U.K. Office for National Statistics said that manufacturing production rose 0.7% in November, beating expectations for a 0.3% gain.

A separate report showed that the U.K. trade deficit narrowed to £8.85 billion in November from £9.84 billon in October. Sterling was steady against the euro, with EUR/GBP at 0.7813. 

NZD/USD slips butremains close to 1-month high

The New Zealand dollar slipped against its U.S. counterpart on Monday, but remained close to a one-month high hit on Friday as demand for the greenback mildly weakened amid expectations that the Federal Reserve could hold interest rates for a longer period.

NZD/USD hit 0.7865 during late Asian trade, the pair's highest since December 11; the pair subsequently consolidated at 0.7832, edging down 0.09%. The pair was likely to find support at 0.7788, Friday's low and resistance at 0.7871, the high of December 11.

The kiwi was lower against the Australian dollar, with AUD/NZD rising 0.34% to 1.0501. Also Monday, data earlier showed that Australian job advertisements rose 1.8% in December, after a 0.7% gain the previous month.

A separate report showed that home loans in Australia slipped 0.7% in November, disappointing expectations for an increase of 2.0%. October's figure was revised to a 0.2% rise from a previously estimated 0.3% gain.