Investing.com – The New Zealand dollar rose to a two-month high against its U.S. counterpart on Wednesday, supported by stronger risk sentiment and by the U.S. dollar’s strong gains against the yen.
NZD/USD hit 0.7746 during late Asian trade, the pair’s highest since February 9; th pair subsequently consolidated at 0.7735, gaining 0.68%.
The pair was likely to find support at 0.7659, Monday’s low and resistance at 0.7785, the high of February 8.
The yen has been hit by speculation that the Bank of Japan will lag other central banks in ending stimulus measures as the country rebuilds after the March 11 earthquake and tsunami.
Risk sentiment was boosted after the release of the minutes of the Federal Reserve’s March policy meeting on Tuesday.
The minutes indicated that policymakers believed the U.S. economic recovery was gaining momentum but highlighted the potential negative impact of rapidly rising commodity prices on inflation expectations, consumer spending and business investment.
The kiwi was also higher against its Australian cousin, with AUD/NZD shedding 0.23% to hit 1.3404.
Meanwhile, any commentary from the Bank of Japan's two-day policy board meeting which was due to end Thursday would closely watched.
NZD/USD hit 0.7746 during late Asian trade, the pair’s highest since February 9; th pair subsequently consolidated at 0.7735, gaining 0.68%.
The pair was likely to find support at 0.7659, Monday’s low and resistance at 0.7785, the high of February 8.
The yen has been hit by speculation that the Bank of Japan will lag other central banks in ending stimulus measures as the country rebuilds after the March 11 earthquake and tsunami.
Risk sentiment was boosted after the release of the minutes of the Federal Reserve’s March policy meeting on Tuesday.
The minutes indicated that policymakers believed the U.S. economic recovery was gaining momentum but highlighted the potential negative impact of rapidly rising commodity prices on inflation expectations, consumer spending and business investment.
The kiwi was also higher against its Australian cousin, with AUD/NZD shedding 0.23% to hit 1.3404.
Meanwhile, any commentary from the Bank of Japan's two-day policy board meeting which was due to end Thursday would closely watched.