Investing.com – The New Zealand dollar was trading within striking distance of a record high against its U.S. counterpart on Tuesday, boosted by expectations for a rate hike by the Reserve Bank of New Zealand this month.
NZD/USD hit 0.8471 during late Asian trade, the daily high; the pair subsequently consolidated at 0.8470, edging up 0.26%.
The pair was likely to find support at 0.8341, the low of July 14 and resistance at 0.8504, the high of July 14 and the pair’s highest since exchange rate controls ended in March 1985.
Data on Monday, showing that consumer price inflation rose by 1% in the second quarter, pushing the annual rate to a 21-year high of 5.3% added to expectations that the RBNZ will hike its benchmark interest rate at its policy setting meeting next week.
In contrast, the minutes of the July 5 meeting of the Reserve Bank of Australia published earlier showed that policymakers believed there was “more time” to assess price pressures, dampening expectations that the bank will tighten policy for some time to come.
Meanwhile, the kiwi was slightly lower against its Australian cousin, with AUD/NZD easing up 0.16% to hit 1.2571.
Later in the day, the U.S. was to publish government data on building permits and housing starts.
NZD/USD hit 0.8471 during late Asian trade, the daily high; the pair subsequently consolidated at 0.8470, edging up 0.26%.
The pair was likely to find support at 0.8341, the low of July 14 and resistance at 0.8504, the high of July 14 and the pair’s highest since exchange rate controls ended in March 1985.
Data on Monday, showing that consumer price inflation rose by 1% in the second quarter, pushing the annual rate to a 21-year high of 5.3% added to expectations that the RBNZ will hike its benchmark interest rate at its policy setting meeting next week.
In contrast, the minutes of the July 5 meeting of the Reserve Bank of Australia published earlier showed that policymakers believed there was “more time” to assess price pressures, dampening expectations that the bank will tighten policy for some time to come.
Meanwhile, the kiwi was slightly lower against its Australian cousin, with AUD/NZD easing up 0.16% to hit 1.2571.
Later in the day, the U.S. was to publish government data on building permits and housing starts.