Investing.com - The New Zealand dollar rose to a one-week high against its U.S. counterpart on Wednesday, bolstered by comments from the head of China’s central bank and strong domestic retail sales data.
NZD/USD hit 0.8396 during late Asian trade, the pair’s highest since February 8; the pair subsequently consolidated at 0.8376, gaining 0.47%.
The pair was likely to find support at 0.8322, the session low and resistance at 0.8405, the high of February 8 and a six-month high.
Market sentiment was boosted after the Governor of the People’s Bank of China Zhou Xiaochuan said he believes the euro zone’s challenges can be solved and that he fully supports measures taken by the European Central Bank during the crisis.
He also said that China will become more involved in efforts to resolve the crisis through mechanisms such as the European Financial Stability Facility.
The kiwi was also boosted by stronger-than-expected data on retail sales. Statistics New Zealand said earlier that the volume of retail sales rose 2.2% from the third quarter, well above forecasts for a 1.3% increase.
The kiwi was also higher against the yen, with NZD/JPY adding 0.47% to hit 65.70.
Earlier Wednesday, the Bank of Japan said it would increase the size of its asset-purchase program and set a 1% goal for inflation in an attempt to boost growth after recent data showing that Japan’s economy contracted in the fourth quarter of 2011.
NZD/USD hit 0.8396 during late Asian trade, the pair’s highest since February 8; the pair subsequently consolidated at 0.8376, gaining 0.47%.
The pair was likely to find support at 0.8322, the session low and resistance at 0.8405, the high of February 8 and a six-month high.
Market sentiment was boosted after the Governor of the People’s Bank of China Zhou Xiaochuan said he believes the euro zone’s challenges can be solved and that he fully supports measures taken by the European Central Bank during the crisis.
He also said that China will become more involved in efforts to resolve the crisis through mechanisms such as the European Financial Stability Facility.
The kiwi was also boosted by stronger-than-expected data on retail sales. Statistics New Zealand said earlier that the volume of retail sales rose 2.2% from the third quarter, well above forecasts for a 1.3% increase.
The kiwi was also higher against the yen, with NZD/JPY adding 0.47% to hit 65.70.
Earlier Wednesday, the Bank of Japan said it would increase the size of its asset-purchase program and set a 1% goal for inflation in an attempt to boost growth after recent data showing that Japan’s economy contracted in the fourth quarter of 2011.