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Forex - NZD/USD higher after NZ finance minister’s remarks

Published 04/05/2011, 03:23 AM
NZD/USD
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NZD/JPY
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Investing.com – The New Zealand dollar was up against its U.S. counterpart on Tuesday after New Zealand’s finance minister said the country probably won’t need to lower borrowing costs again after the nation’s deadliest earthquake in 80 years.

NZD/USD hit 0.7698 during late Asian trade, the daily high; the pair subsequently consolidated at 0.7695, rising 0.20%.

The pair was likely to find support at 0.7580, last Friday’s low and resistance at 0.7721, the high of February 10.

Earlier in the day, Finance Minister Bill English said he would be surprised if another rate cut was needed, because business confidence will rebound from a slump after the magnitude 6.3 quake that struck Christchurch on February 22.

His comments came after a report by the New Zealand Institute of Economic Research which said business confidence slumped to a two-year low in the first quarter.

“The Reserve Bank cut interest rates within a few weeks of the earthquake anticipating just this reaction from business,” English said.

The kiwi was also higher against the yen, with NZD/JPY rising 0.49% to hit 64.87.

Later in the day, the U.S. was to publish data on service sector growth while the Federal Reserve was to publish the minutes of its most recent policy setting meeting.

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