Investing.com - The New Zealand dollar eased off a two-month high Thursday, taking a breather after Chinese inflation data came in lower than expected, which sparked earlier demand for the kiwi on sentiment China will loosen monetary policy to grow more.
NZD/USD hit 0.7962 Thursday in Asian trading, down 0.09% and up from a session low of 0.7956 and off from a high of 0.7980.
The pair was likely to find support 0.7778, Monday's low, and resistance at 0.7980, an earlier Thursday high.
Lower-than-expected inflation rates in China fueled expectations that Beijing is finished with tight monetary policies and is set to begin loosening in order to grow more, which would be bullish for other currencies in the region like New Zealand's dollar.
"I think inflation is still cooling and that’s going to provide scope for Chinese authorities to support markets and the economies more," said Jonathan Cavenagh, a currency strategist at Westpac Banking Corp. in Singapore, according to Bloomberg.
"Both the Aussie and kiwi still continue to do quite well against the U.S. dollar."
Meanwhile, the kiwi was down against the Australian dollar and the euro, with AUD/NZD rising 0.03% to trade at 1.2936 and EUR/NZD rising 0.19% at 1.5974.
Later Thursday, New Zealand will release data on house price inflation.
Aso, the Bank of England will announce its latest moves to its benchmark interest rates.
In the eurozone, the ECB is to announce its decisions on the direction of benchmark interest rates, while also in Europe, industrial production figures will be released as well.
Canada is to produce official data on new house price inflation, a leading indicator of demand in the housing sector.
Later Thursday, the U.S. is to release official data on retail sales and initial jobless claims.
The U.S. will also unveil government data on business inventories, a signal of future business spending, followed by a report on the federal budget balance.
NZD/USD hit 0.7962 Thursday in Asian trading, down 0.09% and up from a session low of 0.7956 and off from a high of 0.7980.
The pair was likely to find support 0.7778, Monday's low, and resistance at 0.7980, an earlier Thursday high.
Lower-than-expected inflation rates in China fueled expectations that Beijing is finished with tight monetary policies and is set to begin loosening in order to grow more, which would be bullish for other currencies in the region like New Zealand's dollar.
"I think inflation is still cooling and that’s going to provide scope for Chinese authorities to support markets and the economies more," said Jonathan Cavenagh, a currency strategist at Westpac Banking Corp. in Singapore, according to Bloomberg.
"Both the Aussie and kiwi still continue to do quite well against the U.S. dollar."
Meanwhile, the kiwi was down against the Australian dollar and the euro, with AUD/NZD rising 0.03% to trade at 1.2936 and EUR/NZD rising 0.19% at 1.5974.
Later Thursday, New Zealand will release data on house price inflation.
Aso, the Bank of England will announce its latest moves to its benchmark interest rates.
In the eurozone, the ECB is to announce its decisions on the direction of benchmark interest rates, while also in Europe, industrial production figures will be released as well.
Canada is to produce official data on new house price inflation, a leading indicator of demand in the housing sector.
Later Thursday, the U.S. is to release official data on retail sales and initial jobless claims.
The U.S. will also unveil government data on business inventories, a signal of future business spending, followed by a report on the federal budget balance.