Investing.com - The New Zealand dollar was sharply higher against its U.S. counterpart on Monday, as signs of progress in handling the debt crisis in the euro zone boosted demand for riskier assets.
NZD/USD hit 0.7554 during late Asian trade, the pair’s highest since November 21; the pair subsequently consolidated at 0.7523, climbing 1.55%.
The pair was likely to find support at 0.7438, the low of November 22 and resistance at 0.7648, the high of November 18.
The kiwi rallied to a one-week high against the greenback as euro-zone leaders were negotiating a fiscal pact aimed at preventing the currency bloc from fracturing.
Viewed as a first step toward closer fiscal and economic coordination within the single currency area, the proposal would make budget discipline legally binding and enforceable by European authorities.
But the kiwi’s gains were capped after the International Monetary Fund denied reports that it was preparing a EUR600 billion aid package for Italy.
Earlier Monday, the National Bank of New Zealand said that its index of business confidence rose to 18.3 for November, after a reading at 13.2 the previous month.
The kiwi was also sharply higher against the euro with EUR/NZD tumbling 1.11%, to hit 1.7674.
Later in the day, the U.S. was to release official data on new home sales.
NZD/USD hit 0.7554 during late Asian trade, the pair’s highest since November 21; the pair subsequently consolidated at 0.7523, climbing 1.55%.
The pair was likely to find support at 0.7438, the low of November 22 and resistance at 0.7648, the high of November 18.
The kiwi rallied to a one-week high against the greenback as euro-zone leaders were negotiating a fiscal pact aimed at preventing the currency bloc from fracturing.
Viewed as a first step toward closer fiscal and economic coordination within the single currency area, the proposal would make budget discipline legally binding and enforceable by European authorities.
But the kiwi’s gains were capped after the International Monetary Fund denied reports that it was preparing a EUR600 billion aid package for Italy.
Earlier Monday, the National Bank of New Zealand said that its index of business confidence rose to 18.3 for November, after a reading at 13.2 the previous month.
The kiwi was also sharply higher against the euro with EUR/NZD tumbling 1.11%, to hit 1.7674.
Later in the day, the U.S. was to release official data on new home sales.