Investing.com - The New Zealand dollar traded higher against its U.S. counterpart during Wednesday’s Asian session following the release of consumer price inflation data.
In Asian trading Wednesday, NZD/USD rose 0.10% to 0.8389. The pair was likely to find support at 0.8308, the low of October 14 and resistance at 0.8436, the high of September 19.
Earlier Wednesday, Statistics New Zealand said the country’s CPI rose 0.9% in the third quarter following a second-quarter gain of 0.2%. The third-quarter reading was inline with analysts’ estimates.
The CPI data arrived a day after a member of the Reserve Bank of New Zealand made comments regarding the country’s rising property prices.
"The underlying issue in the New Zealand housing market is a shortage of supply. In Christchurch this is a direct result of the earthquakes. In Auckland, the shortage has been growing over a much longer period, with weak rates of house building since 2005," according to the text of a speech given by Reserve Bank of New Zealand Deputy Governor Grant Spencer in Auckland today.
The kiwi was also supported despite the ongoing U.S. government shutdown that has the country on the brink of sovereign debt default.
Following the close of U.S. markets Tuesday, Fitch Ratings, the only of one of the three major credit ratings agencies that still has an AAA rating on the U.S., put U.S. Treasury bonds on Rating Watch Negative. That could be viewed as a sign Fitch is preparing to pare its rating on U.S. sovereign debt.
"The prolonged negotiations over raising the debt ceiling ... risks undermining confidence in the role of the U.S. dollar as the preeminent global reserve currency, by casting doubt over the full faith and credit of the U.S. This `faith' is a key reason why the U.S. 'AAA' rating can tolerate a substantially higher level of public debt than other AAA" bonds," said Fitch in a statement.
Elsewhere, NZD/JPY climbed 0.57% to 82.68 while AUD/NZD fell 0.24% to 1.1353.
In Asian trading Wednesday, NZD/USD rose 0.10% to 0.8389. The pair was likely to find support at 0.8308, the low of October 14 and resistance at 0.8436, the high of September 19.
Earlier Wednesday, Statistics New Zealand said the country’s CPI rose 0.9% in the third quarter following a second-quarter gain of 0.2%. The third-quarter reading was inline with analysts’ estimates.
The CPI data arrived a day after a member of the Reserve Bank of New Zealand made comments regarding the country’s rising property prices.
"The underlying issue in the New Zealand housing market is a shortage of supply. In Christchurch this is a direct result of the earthquakes. In Auckland, the shortage has been growing over a much longer period, with weak rates of house building since 2005," according to the text of a speech given by Reserve Bank of New Zealand Deputy Governor Grant Spencer in Auckland today.
The kiwi was also supported despite the ongoing U.S. government shutdown that has the country on the brink of sovereign debt default.
Following the close of U.S. markets Tuesday, Fitch Ratings, the only of one of the three major credit ratings agencies that still has an AAA rating on the U.S., put U.S. Treasury bonds on Rating Watch Negative. That could be viewed as a sign Fitch is preparing to pare its rating on U.S. sovereign debt.
"The prolonged negotiations over raising the debt ceiling ... risks undermining confidence in the role of the U.S. dollar as the preeminent global reserve currency, by casting doubt over the full faith and credit of the U.S. This `faith' is a key reason why the U.S. 'AAA' rating can tolerate a substantially higher level of public debt than other AAA" bonds," said Fitch in a statement.
Elsewhere, NZD/JPY climbed 0.57% to 82.68 while AUD/NZD fell 0.24% to 1.1353.