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Forex - NZD/USD higher but gains seen limited

Published 12/10/2014, 03:03 AM
Kiwi edges higher vs. greenback, eyes on RBNZ statement
NZD/USD
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AUD/NZD
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Investing.com - The New Zealand dollar was higher against its U.S. counterpart on Wednesday, but gains were expected to remain limited by sustained support for the greenback and as markets eyed the Reserve Bank of New Zealand's upcoming policy statement.

NZD/USD hit 0.7728 during late Asian trade, the session high; the pair subsequently consolidated at 0.7697, rising 0.25%.

The pair was likely to find support at 0.7606, Tuesday's low and a two-and-a-half year low and resistance at 0.7788, the high of December 5.

The greenback remained supported after last week’s strong U.S. jobs report for November prompted investors to bring forward expectations for the first hike in interest rates to mid-2015 from September 2015.

Elsewhere, the Greek government surprised markets on Tuesday after deciding to bring forward a parliamentary vote for president to next week, a move which could trigger early elections if Prime Minister Antonis Samaras’ candidate is not chosen.

The kiwi was steady against the Australian dollar, with AUD/NZD inching up 0.01% to 1.0800.

Also Wednesday, the Australian Bureau of Statistics said that home loans rose 0.3% in October, beating expectations for a 0.2% gain. Home loans dropped 0.4% in September, whose figure was revised from a previously estimated decline of 0.7%.

Separately, the Westpac Banking Corporation reported that Australia's consumer sentiment declined 5.7% this month, after a 1.9% rise in November.

Later in the day, the RBNZ was to announce its benchmark interest rate and publish its rate statement. The announcement was to be followed by a press conference.

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