Investing.com – The New Zealand dollar rose to a record high against its U.S. counterpart on Tuesday, as concerns over deadlocked debt talks weighed on the greenback, while the kiwi was lifted by expectations for a near-term rate hike by the Reserve Bank.
NZD/USD hit 0.8712 during late Asian trade, the pair’s highest since exchange rate controls ended in March 1985; the pair subsequently consolidated at 0.8709, climbing 0.79%.
The pair was likely to find support at 0.8537, the low of July 21 and resistance at 0.8800.
The greenback was broadly lower as talks on raising the U.S.’s USD14.3 trillion debt ceiling remained at an impasse.
Late Monday, U.S. President Barack Obama warned that the nation’s growing debt threatens to do “serious” damage to the economy and called on Congress to compromise, in order to avert a "reckless and irresponsible" national default.
The kiwi remained supported by expectations for an interest rate hike by the RBNZ after data last week showed that inflation rate hit a 21-year high in the second quarter.
The kiwi was almost unchanged against its Australian cousin, with AUD/NZD inching up 0.04% to hit 1.2552.
Also Tuesday, official data showed that New Zealand’s trade surplus narrowed in June as exports fell to a five-month low.
Statistics New Zealand said exports exceeded imports by NZD230 million, down from a revised NZD551 million surplus in May.
NZD/USD hit 0.8712 during late Asian trade, the pair’s highest since exchange rate controls ended in March 1985; the pair subsequently consolidated at 0.8709, climbing 0.79%.
The pair was likely to find support at 0.8537, the low of July 21 and resistance at 0.8800.
The greenback was broadly lower as talks on raising the U.S.’s USD14.3 trillion debt ceiling remained at an impasse.
Late Monday, U.S. President Barack Obama warned that the nation’s growing debt threatens to do “serious” damage to the economy and called on Congress to compromise, in order to avert a "reckless and irresponsible" national default.
The kiwi remained supported by expectations for an interest rate hike by the RBNZ after data last week showed that inflation rate hit a 21-year high in the second quarter.
The kiwi was almost unchanged against its Australian cousin, with AUD/NZD inching up 0.04% to hit 1.2552.
Also Tuesday, official data showed that New Zealand’s trade surplus narrowed in June as exports fell to a five-month low.
Statistics New Zealand said exports exceeded imports by NZD230 million, down from a revised NZD551 million surplus in May.