Forex - NZD/USD hits 1-year high, shrugging off weak domestic data

Published 10/14/2010, 07:44 AM
NZD/USD
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EUR/NZD
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Investing.com – New Zealand’s dollar advanced to a fresh 1-year high against its U.S. counterpart on Thursday, as investors shrugged off worse-than-expected data on New Zealand’s retail sales.

NZD/USD hit 0.7644 during European early afternoon trade, the pair’s highest since October 21, 2009, the pair subsequently consolidated at 0.7614, gaining 0.17%.

The pair was likely to find support at 0.7478, the low of October 12 and short-term resistance at 0.7574, the high of October 21, 2009.

Earlier in the day, the Monetary Authority of Singapore unexpectedly tightened monetary policy, broadening the range of the Singapore dollar's trading band. Immediately following the move, the U.S. dollar fell to a record low of 1.2886 against the Singapore dollar.

The action added to pressure on the U.S. dollar which has weakened amid expectations that the Federal Reserve could begin to implement further monetary easing as soon as next month, if inflation remains too low or unemployment too high.

Meanwhile, the kiwi was down against the euro, with EUR/NZD gaining 0.76% to hit 1.8503.

Earlier in the day, official data showed that New Zealand retail sales were unexpectedly flat in August.

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