Forex - NZD/USD close to 2-week high as sentiment recovers

Published 01/02/2013, 03:03 AM
Updated 01/02/2013, 03:04 AM
NZD/USD
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AUD/NZD
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Investing.com - The New Zealand dollar was trading close to a two-week high against its U.S. counterpart on Wednesday, as news that the U.S. budget bill was voted broadly lifted market sentiment.

NZD/USD hit 0.8396 during late Asian trade, the pair's highest since December 19; the pair subsequently consolidated at 0.8359, climbing 0.89%.

The pair was likely to find support at 0.8262, the session low and resistance at 0.8406, the high of December 19.

U.S. lawmakers passed a compromise bill on Tuesday to avoid the fiscal cliff, blocking a series of looming tax increases and spending cuts that could have pushed the U.S. economy back into a recession.

U.S. President Barack Obama hailed the deal as "just one step in the broader effort to strengthen the economy".

The U.S. president was speaking after the House of Representatives passed a Senate-backed bill by 257 votes to 167.

The kiwi was higher against the Australian dollar with AUD/NZD falling 0.25%, to hit 1.2528.

Later in the day, the Institute of Supply Management was to produce a report on manufacturing growth in the U.S.


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