Investing.com - The New Zealand dollar was higher against its U.S. counterpart on Tuesday, as investors continued to eye developments on the U.S. budget front, with hopes a deal will be struck before the debt ceiling deadline on Thursday.
NZD/USD hit 0.8406 during late Asian trade, the pair's highest since September 19; the pair subsequently consolidated at 0.8390, rising 0.38%.
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.
U.S. Senate Majority Leader Harry Reid said Monday that “tremendous progress” had been made towards a deal, fuelling hopes that a compromise can be reached.
If an agreement to raise the federal borrowing limit is not struck ahead of Thursday’s deadline, the U.S. will face an unprecedented sovereign debt default.
Any potential deal will still have to be approved by the House of Representatives, where Speaker John Boehner would have to decide whether to allow a vote or demand federal spending cuts.
The kiwi was lower against the Australian dollar with AUD/NZD edging up 0.18%, to hit 1.1374.
Also Tuesday, the minutes of the Reserve Bank of Australia's October policy meeting showed that the bank was in no hurry to cut interest rates further, saying that previous rate cuts are affecting the nation's economy.
Separately, official data showed that new motor vehicle sales in Australia fell 0.1% in September, following a downwardly revised 0.7% increase the previous month.
Later in the day, the U.S. was to release a report on manufacturing activity in the Empire state.
NZD/USD hit 0.8406 during late Asian trade, the pair's highest since September 19; the pair subsequently consolidated at 0.8390, rising 0.38%.
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.
U.S. Senate Majority Leader Harry Reid said Monday that “tremendous progress” had been made towards a deal, fuelling hopes that a compromise can be reached.
If an agreement to raise the federal borrowing limit is not struck ahead of Thursday’s deadline, the U.S. will face an unprecedented sovereign debt default.
Any potential deal will still have to be approved by the House of Representatives, where Speaker John Boehner would have to decide whether to allow a vote or demand federal spending cuts.
The kiwi was lower against the Australian dollar with AUD/NZD edging up 0.18%, to hit 1.1374.
Also Tuesday, the minutes of the Reserve Bank of Australia's October policy meeting showed that the bank was in no hurry to cut interest rates further, saying that previous rate cuts are affecting the nation's economy.
Separately, official data showed that new motor vehicle sales in Australia fell 0.1% in September, following a downwardly revised 0.7% increase the previous month.
Later in the day, the U.S. was to release a report on manufacturing activity in the Empire state.