Investing.com – The New Zealand dollar surged to a two-month high against its U.S. counterpart on Monday, after a report showing that prices for New Zealand-produced commodities extended gains for a second month to reach a record high.
NZD/USD hit 0.7704 during late Asian trade, the pair’s highest since February 10; the pair subsequently consolidated at 0.7693, gaining 0.20%.
The pair was likely to find support at 0.7580, Friday’s low and resistance at 0.7721, the high of February 10.
Earlier in the day, the Australia and New Zealand banking group said its commodity price index rose 4.7% to 336.9 in March, taking its annual gain to almost 30%. For the first time in 17 years, all 17 commodity prices rose in the month.
"The New Zealand economy is poised to benefit from the increased rural income that will inevitably filter through the economy," ANZ New Zealand economist Steve Edwards said in the report.
Wool and whole milk powder prices were the biggest gainers in March each up 12%, with skim milk powder, lumber and skins gaining 7%.
The kiwi was also higher against the yen, with NZD/JPY rising 0.31% to hit 64.73.
Later Monday, the Chairman of the U.S. Federal Reserve, Ben Bernanke was to speak.
NZD/USD hit 0.7704 during late Asian trade, the pair’s highest since February 10; the pair subsequently consolidated at 0.7693, gaining 0.20%.
The pair was likely to find support at 0.7580, Friday’s low and resistance at 0.7721, the high of February 10.
Earlier in the day, the Australia and New Zealand banking group said its commodity price index rose 4.7% to 336.9 in March, taking its annual gain to almost 30%. For the first time in 17 years, all 17 commodity prices rose in the month.
"The New Zealand economy is poised to benefit from the increased rural income that will inevitably filter through the economy," ANZ New Zealand economist Steve Edwards said in the report.
Wool and whole milk powder prices were the biggest gainers in March each up 12%, with skim milk powder, lumber and skins gaining 7%.
The kiwi was also higher against the yen, with NZD/JPY rising 0.31% to hit 64.73.
Later Monday, the Chairman of the U.S. Federal Reserve, Ben Bernanke was to speak.