Investing.com - The New Zealand dollar traded higher against its U.S. rival during Tuesday’s Asian session following the release of consumer price inflation data.
In Asian trading Tuesday, NZD/USD rose 0.35% to 0.7837. The pair was likely to find support at 0.7710, the low of July 3 and resistance at 0.7879, the high o July 12.
Earlier Tuesday, Statistics New Zealand said consumer price inflation there rose by 0.2% last quarter compared with a 0.4% in the first quarter. Analysts expected an increase of 0.3%.
Cooling inflation in New Zealand gives the Reserve Bank of New Zealand some room to at least keep interest rates steady at 2.5%. The central bank has been vocal about its concerns regarding a possible housing bubble there.
Still, most traders believe RBNZ will leave rates on hold this year with an eye toward a possible increase in the first quarter of 2014. RBNZ is one of just a few global central banks that has not engaged in rate cuts or some form of monetary easing.
The kiwi also proved resilient a day after China, the world’s second-largest, said its second-quarter GDP grew at 7.5%. That met expectations. China is New Zealand’s largest trading partner.
New Zealand’s dollar also got a lift from some tepid U.S. data. In U.S. economic news out Monday, U.S. retail sales rose 0.4% last month, well below the 0.8% increase economists expected. Excluding sales of automobiles, gasoline and building materials, retail sales rose just 0.1% in June following a 0.2% increase in May.
The New York Federal Reserve’s Empire State Manufacturing Survey rose to 9.46 fro, 7.84 in June. Economists expected a reading of 5.
Elsewhere, NZD/JPY rose 0.25% to 78.17 while AUD/NZD added 0.37% 1.1704.
In Asian trading Tuesday, NZD/USD rose 0.35% to 0.7837. The pair was likely to find support at 0.7710, the low of July 3 and resistance at 0.7879, the high o July 12.
Earlier Tuesday, Statistics New Zealand said consumer price inflation there rose by 0.2% last quarter compared with a 0.4% in the first quarter. Analysts expected an increase of 0.3%.
Cooling inflation in New Zealand gives the Reserve Bank of New Zealand some room to at least keep interest rates steady at 2.5%. The central bank has been vocal about its concerns regarding a possible housing bubble there.
Still, most traders believe RBNZ will leave rates on hold this year with an eye toward a possible increase in the first quarter of 2014. RBNZ is one of just a few global central banks that has not engaged in rate cuts or some form of monetary easing.
The kiwi also proved resilient a day after China, the world’s second-largest, said its second-quarter GDP grew at 7.5%. That met expectations. China is New Zealand’s largest trading partner.
New Zealand’s dollar also got a lift from some tepid U.S. data. In U.S. economic news out Monday, U.S. retail sales rose 0.4% last month, well below the 0.8% increase economists expected. Excluding sales of automobiles, gasoline and building materials, retail sales rose just 0.1% in June following a 0.2% increase in May.
The New York Federal Reserve’s Empire State Manufacturing Survey rose to 9.46 fro, 7.84 in June. Economists expected a reading of 5.
Elsewhere, NZD/JPY rose 0.25% to 78.17 while AUD/NZD added 0.37% 1.1704.