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Forex - NZD/USD hits 3-year high, tracking Aussie higher

Published 04/21/2011, 03:20 AM
NZD/USD
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NZD/JPY
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Investing.com – The New Zealand dollar hit a three-year high against its U.S. counterpart on Thursday, as concerns over U.S. debt and stronger risk sentiment spurred investors towards higher yielding currencies.

NZD/USD hit 0.8038 during late Asian trade, the pair’s highest since March 28, 2008; the pair subsequently consolidated at 0.8010, gaining 0.37%.

The pair was likely to find support at 0.7879, Wednesday’s low and resistance at 0.8100, the high of March 26, 2008.

The greenback came under pressure after ratings agency Standard & Poor's warned earlier in the week that it may cut the United States’ triple A credit rating, while the Federal Reserve looks likely to trail behind other central banks in tightening monetary policy.

The New Zealand dollar’s gains were underpinned by Wall Street's advance overnight and gains in most Asian stock markets, following robust U.S. corporate earnings results. On Wednesday, Apple reported that its latest quarterly profit almost doubled on the back of record iPhone sales.

Meanwhile, the kiwi was down against the euro, with NZD/JPY shedding 0.28% to hit 65.67.

Later in the day, the U.S. was to publish official data on initial jobless claims and house prices. Also Thursday, the Federal Reserve Bank of Philadelphia was to publish an index of manufacturing activity.

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