Investing.com - The New Zealand dollar edged higher against its U.S. counterpart on Tuesday, as markets were jittery amid uncertainty over a highly anticipated German court ruling this week, while the European Central Bank’s bond-buying plan continued to support.
NZD/USD hit 0.8106 during late Asian trade, the daily high; the pair subsequently consolidated at 0.8102, edging 0.17% higher.
The pair was likely to find support at 0.8053, the low of August 16 and resistance at 0.8143, the high of August 22.
Market sentiment remained supported after ECB President Mario Draghi unveiled last week details of a bond purchasing program aimed at stemming the debt crisis in the euro zone, dubbed Outright Monetary Transactions.
But the kiwi’s gains were limited as Germany’s constitutional court was to decide on Tuesday whether to delay its ruling on the euro zone’s bailout fund, the European Stability Mechanism, initially scheduled on Wednesday.
Meanwhile, markets continued to eye the outcome of the Federal Reserve’s policy meeting on Thursday, amid fresh speculation that the U.S. central bank may announce a third round of quantitative easing to boost growth.
Elsewhere, the kiwi was higher against the Australian dollar with AUD/NZD slipping 0.05%, to hit 1.2768.
Also Tuesday, the National Bank of Australia said earlier that its index of business confidence ticked down to minus 2 in August, from a reading of 3 the previous month.
Later in the day, the U.S. was to produce a report on trade balance.
NZD/USD hit 0.8106 during late Asian trade, the daily high; the pair subsequently consolidated at 0.8102, edging 0.17% higher.
The pair was likely to find support at 0.8053, the low of August 16 and resistance at 0.8143, the high of August 22.
Market sentiment remained supported after ECB President Mario Draghi unveiled last week details of a bond purchasing program aimed at stemming the debt crisis in the euro zone, dubbed Outright Monetary Transactions.
But the kiwi’s gains were limited as Germany’s constitutional court was to decide on Tuesday whether to delay its ruling on the euro zone’s bailout fund, the European Stability Mechanism, initially scheduled on Wednesday.
Meanwhile, markets continued to eye the outcome of the Federal Reserve’s policy meeting on Thursday, amid fresh speculation that the U.S. central bank may announce a third round of quantitative easing to boost growth.
Elsewhere, the kiwi was higher against the Australian dollar with AUD/NZD slipping 0.05%, to hit 1.2768.
Also Tuesday, the National Bank of Australia said earlier that its index of business confidence ticked down to minus 2 in August, from a reading of 3 the previous month.
Later in the day, the U.S. was to produce a report on trade balance.