Investing.com - The New Zealand dollar rose slightly against its U.S. rival during Asian trade Wednesday on the back of some supportive real estate data.
In Asian trading Wednesday, NZD/USD rose 0.05% to 0.8412. The Kiwi added 0.10% against the greenback during Tuesday’s U.S. session. The pair was likely to find support at 0.8326, the low of February 8 and resistance at 0.8388, the high of February 8.
Earlier today, the Real Estate Institute said climbed by nearly 20% last month in New Zealand to 5,000, good for the biggest monthly increase in five years. Electronic card spending advanced almost 6% to NZD4.6 billion.
Following the news, an ANZ Bank economist said slack wage growth and high unemployment will keep a lid on New Zealand’s economic growth this year. Press reports also cited the ANZ economist as saying he does not expect the Reserve Bank of New Zealand to act on interest rates until late in the first quarter of 2014. Perhaps in a surprise to some, the expectation is that RBZ will raise, not lower rates.
Elsewhere, other market participants are saying that even if RBZ does lower interest rates, at this point an unlikely proposition, that rate cut may not have the desired impact of lowering the Kiwi.
Policymakers have recently talked about ways to lower the Kiwi’s strength, particularly against the greenback and the euro, to help New Zealand’s exporters. However, some politicians and monetary policy experts there view the effort as futile.
Despite the demands of some industrial executives there, RBZ has signaled it will not intervene in the global foreign currency markets in a bid to weaken the Kiwi.
Elsewhere, AUD/NZD jumped 0.28% to 1.2298 while NZD/JPY slipped 0.47% to 78.22. EUR/NZD fell 0.21% 1.5973.
In Asian trading Wednesday, NZD/USD rose 0.05% to 0.8412. The Kiwi added 0.10% against the greenback during Tuesday’s U.S. session. The pair was likely to find support at 0.8326, the low of February 8 and resistance at 0.8388, the high of February 8.
Earlier today, the Real Estate Institute said climbed by nearly 20% last month in New Zealand to 5,000, good for the biggest monthly increase in five years. Electronic card spending advanced almost 6% to NZD4.6 billion.
Following the news, an ANZ Bank economist said slack wage growth and high unemployment will keep a lid on New Zealand’s economic growth this year. Press reports also cited the ANZ economist as saying he does not expect the Reserve Bank of New Zealand to act on interest rates until late in the first quarter of 2014. Perhaps in a surprise to some, the expectation is that RBZ will raise, not lower rates.
Elsewhere, other market participants are saying that even if RBZ does lower interest rates, at this point an unlikely proposition, that rate cut may not have the desired impact of lowering the Kiwi.
Policymakers have recently talked about ways to lower the Kiwi’s strength, particularly against the greenback and the euro, to help New Zealand’s exporters. However, some politicians and monetary policy experts there view the effort as futile.
Despite the demands of some industrial executives there, RBZ has signaled it will not intervene in the global foreign currency markets in a bid to weaken the Kiwi.
Elsewhere, AUD/NZD jumped 0.28% to 1.2298 while NZD/JPY slipped 0.47% to 78.22. EUR/NZD fell 0.21% 1.5973.