Forex - NZD/USD hits 2-day high on new Greece hopes

Published 02/13/2012, 03:16 AM
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Investing.com - The New Zealand dollar rallied to a two-day high against its U.S. counterpart on Monday, as risk sentiment was boosted after Greek lawmakers approved fresh austerity measures following a series of delays in negotiations.

NZD/USD hit 0.8354 during late Asian trade, the pair’s highest since February 9; the pair subsequently consolidated at 0.8361, climbing 1.16%.

The pair was likely to find support at 0.8248, the low of February 10 and resistance at 0.8405, the high of February 8.

The risk-related kiwi found support after Greece’s parliament approved on Sunday a set of spending and wage cuts needed to secure the country’s EUR130 billion bailout package and avoid a sovereign debt default.

Along with the parliamentary approval, Greece must find a further EUR325 million of spending cuts and political assurances must be given that the plan will be implemented, in order to gain approval from global lenders.

Euro zone finance ministers are scheduled to meet later this week to discuss the approval of Greece’s second bailout.

Elsewhere, preliminary government data showed that Japan’s gross domestic product fell more-than-expected in the fourth quarter, ticking down 0.6% after a 1.4% rise the previous quarter.

Japan is New Zealand’s second biggest export partner.

The kiwi was also higher against the Australian dollar with AUD/NZD declining 0.39%, to hit 1.2864.

Earlier Monday, official data showed that Australian home loans rose more-than-expected in December, climbing 2.3% after a 1.8% rise the previous month.

Analysts had expected home loans to rise 1.9% in December.


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