Forex - NZD/USD hits 10-month high ahead of U.S. services PMI

Published 10/05/2010, 09:51 AM
NZD/USD
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EUR/NZD
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Investing.com – New Zealand’s dollar was up against its U.S. counterpart on Tuesday, soaring to a 10-month high, ahead of the release of U.S. industry data on service sector activity.

NZD/USD hit 0.7472 during European afternoon trade, the pair’s highest since November 18, 2009; the pair subsequently consolidated at 0.7461, gaining 0.55%.

The pair was likely to find support at 0.7328, the low of October 1 and resistance at 0.7522, the high of November 16, 2009.

Late Monday, New Zealand’s Finance Minister Bill English said the nation’s currency is unlikely to weaken even as economic growth slows and the central bank puts interest rate increases on hold.

“The strength of the kiwi is one of the headwinds for our recovery,” English said. “Usually at this stage of a recovery the dollar has dropped against the U.S. considerably and that beefs up our export sector. That hasn’t happened.”

Meanwhile, the kiwi was down against the euro, with EUR/NZD gaining 0.32% to hit 1.8506.

Later in the day, the U.S. was to release official data on service sector activity.

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