Investing.com - The New Zealand was higher against its U.S. counterpart on Monday, as market sentiment improved ahead of the European Central Bank’s policy meeting later in the week, amid hopes the central bank will announce fresh measures to stem the euro zone’s debt crisis.
NZD/USD hit 0.7992 during late Asian trade, the daily high; the pair subsequently consolidated at 0.7994, adding 0.23%.
The pair was likely to find support at 0.7929, the low of July 17 and resistance at 0.8041, the high of August 31.
The kiwi eased off a five-week low against the greenback after ECB President Mario Draghi indicated on Monday that he would be comfortable buying bonds with maturities of up to about three years, saying that it would not constitute state financing.
At its policy meeting on Thursday, the ECB is expected to announce the details of a long awaited debt-buying program designed to help ease funding pressures for indebted euro zone countries.
Separately, the greenback remained under pressure after Federal Reserve Chairman Ben Bernanke said Friday that the Fed would act as needed to strengthen the U.S. economic recovery, but he stopped short of indicating that a fresh round of stimulus is imminent.
Elsewhere, the kiwi was lower against the Australian dollar with AUD/NZD edging up 0.09%, to hit 1.2858.
Also Tuesday, the Reserve Bank of Australia held the benchmark interest rate at 3.50%, in a widely expected move.
The bank said that, with inflation expected to be consistent with the target and growth close to trend, but with a more subdued international outlook than was the case a few months ago, the current stance of monetary policy remained appropriate.
Later in the day, the Institute for Supply Management was to release a closely watched report on U.S. manufacturing activity.
NZD/USD hit 0.7992 during late Asian trade, the daily high; the pair subsequently consolidated at 0.7994, adding 0.23%.
The pair was likely to find support at 0.7929, the low of July 17 and resistance at 0.8041, the high of August 31.
The kiwi eased off a five-week low against the greenback after ECB President Mario Draghi indicated on Monday that he would be comfortable buying bonds with maturities of up to about three years, saying that it would not constitute state financing.
At its policy meeting on Thursday, the ECB is expected to announce the details of a long awaited debt-buying program designed to help ease funding pressures for indebted euro zone countries.
Separately, the greenback remained under pressure after Federal Reserve Chairman Ben Bernanke said Friday that the Fed would act as needed to strengthen the U.S. economic recovery, but he stopped short of indicating that a fresh round of stimulus is imminent.
Elsewhere, the kiwi was lower against the Australian dollar with AUD/NZD edging up 0.09%, to hit 1.2858.
Also Tuesday, the Reserve Bank of Australia held the benchmark interest rate at 3.50%, in a widely expected move.
The bank said that, with inflation expected to be consistent with the target and growth close to trend, but with a more subdued international outlook than was the case a few months ago, the current stance of monetary policy remained appropriate.
Later in the day, the Institute for Supply Management was to release a closely watched report on U.S. manufacturing activity.