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Forex - NZD/USD hits 2-day high ahead of ECB meeting

Published 09/06/2012, 03:03 AM
NZD/USD
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AUD/NZD
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Investing.com - The New Zealand dollar rose to a two-day high against its U.S. counterpart on Thursday, as market sentiment strengthened ahead of the European Central Bank’s policy meeting later in the day, amid hopes for fresh measures to stem the debt crisis in the euro zone.

NZD/USD hit 0.7978 during late Asian trade, the pair’s highest since September 4; the pair subsequently consolidated at 0.7968, advancing 0.31%.

The pair was likely to find support at 0.7913, Wednesday’s low and resistance at 0.8030, the high of August 30.

Markets were eyeing the ECB’s monetary policy meeting later Thursday, amid expectations that the central bank is set to announce more details of measures to help stabilize the region’s sovereign debt markets.

Central bank sources said earlier that the ECB is ready to waive seniority status on government bonds it buys under a new program which it is set to be approved at the upcoming meeting.

Such a step could help encourage private investors to buy debts of troubled countries, as that would mean the ECB would have to bear some of the burden of any losses should a country default.

The kiwi was steady against the Australian dollar with AUD/NZD easing up 0.05%, to hit 1.2835.

Also Thursday, official data showed that Australia’s unemployment rate ticked down to 5.1% in August from 5.2% the previous month, confounding expectations for a rise to 5.3%.

The report also showed that the number of employed people in Australia fell by 8,800 last month, after a 11,700 rise in July, disappointing expectations for an increase of 5,100.

Later in the day, the U.S. was to release a report on ADP non-farm employment payrolls, followed by weekly government data on unemployment claims. The country was also to release a report by the Institute for Supply Management on service sector activity.


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