Investing.com - The New Zealand dollar climbed near two-and-a-half week highs against its U.S. counterpart on Monday, as lower-than-expected inflation expectations in the U.S. weighed on demand for the greenback.
NZD/USD hit 0.7975 during late Asian trade, the pair's highest since October 29; the pair subsequently consolidated at 0.7941, advancing 0.44%.
The pair was likely to find support at 0.7822, Friday's low and resistance at 0.7992, the high of October 22.
On Friday, the preliminary reading of the University of Michigan’s consumer sentiment index rose to a seven year high of 89.4, better than forecasts of 87.5 and up from October’s reading of 86.9.
However the report also showed that consumers expected annual inflation of 2.6% this year, down from expectations for inflation of 2.9% in October.
The kiwi was higher against the Australian dollar, with AUD/NZD shedding 0.26% to 1.1038.
Also Monday, the Australian Bureau of Statistics said new motor vehicle sales dropped 1.6% in October, after an increase of 2.9% the previous month.
Later in the day, the U.S. was to release a report on manufacturing activity in the New York region, as well as data on industrial production.