Investing.com - The New Zealand dollar was higher against its U.S. counterpart on Wednesday, but gains were limited as growing expectations for the Federal Reserve to soon begin tapering its bond purchases continued to support demand for the greenback.
NZD/USD hit 0.7832 during late Asian trade, the session high; the pair subsequently consolidated at 0.7846, advancing 0.60%.
The pair was likely to find support at 0.7756, the low of September 2 and resistance at 0.7918, the high of August 6.
Data on Tuesday showed that U.S. manufacturing activity expanded at the fastest rate since April 2011 in August. The upbeat data reinforced the view that the Fed could start to unwind its stimulus program at its upcoming policy meeting on September 17-18.
The Institute for Supply Management said its purchasing managers’ index rose to 55.7 in August from a reading of 55.4 in July. Analysts had expected a reading of 54.0.
Investors were looking ahead to Friday’s U.S. nonfarm payrolls report which is seen as central to the Fed’s decision on tapering.
The kiwi was steady against the Australian dollar with AUD/NZD easing up 0.03%, to hit 1.1621.
Also Wednesday, official data showed that Australia's gross domestic product expanded by 0.6% in the second quarter, in line with expectations, following a downwardly revised 0.5% expansion in the three months to March.
Later in the day, the U.S. was to publish a report on the trade balance.
NZD/USD hit 0.7832 during late Asian trade, the session high; the pair subsequently consolidated at 0.7846, advancing 0.60%.
The pair was likely to find support at 0.7756, the low of September 2 and resistance at 0.7918, the high of August 6.
Data on Tuesday showed that U.S. manufacturing activity expanded at the fastest rate since April 2011 in August. The upbeat data reinforced the view that the Fed could start to unwind its stimulus program at its upcoming policy meeting on September 17-18.
The Institute for Supply Management said its purchasing managers’ index rose to 55.7 in August from a reading of 55.4 in July. Analysts had expected a reading of 54.0.
Investors were looking ahead to Friday’s U.S. nonfarm payrolls report which is seen as central to the Fed’s decision on tapering.
The kiwi was steady against the Australian dollar with AUD/NZD easing up 0.03%, to hit 1.1621.
Also Wednesday, official data showed that Australia's gross domestic product expanded by 0.6% in the second quarter, in line with expectations, following a downwardly revised 0.5% expansion in the three months to March.
Later in the day, the U.S. was to publish a report on the trade balance.