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Forex - NZD/USD hits 4-day high as focus stays on ECB

Published 12/02/2010, 06:01 AM
NZD/USD
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EUR/NZD
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Investing.com – New Zealand’s dollar rose to a 4-day high against its U.S. counterpart on Thursday, amid speculation that the European Central Bank would take fresh steps to calm fears over sovereign debt contagion in the euro zone.

NZD/USD hit 0.7550 during European morning trade, the pair’s highest since November 26; the pair subsequently consolidated at 0.7525, gaining 0.48%.

The pair was likely to find support at 0.7401, Wednesday’s low and resistance at 0.7621, the high of November 26.

As the debt crisis in the euro zone threatened to spill over into Spain, expectations mounted that the ECB would announce an expansion of its bond-buying program or delay the withdrawal of unlimited liquidity support for banks, after its policy meeting on Thursday.

Olli Rehn, the EU economic commissioner, said Wednesday that he was confident that the banks actions, with other measures, "could provide a sound basis for the continuation of actions of stabilization."

The kiwi was also up against the euro, with EUR/NZD shedding 0.12% to hit 1.7623.

Later in the day, the ECB was to announce its benchmark interest rate. The announcement was to be followed by a press conference. Also Thursday, the U.S. was to publish key weekly data on initial jobless claims as well as a report on pending home sales.

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