Forex - NZD/USD hits 3-week high as fourth quarter GDP expands

Published 03/24/2011, 04:48 AM
NZD/USD
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NZD/JPY
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Investing.com – The New Zealand dollar hit a three-week high against its U.S. counterpart on Thursday, after a government report showing that the country’s economy expanded more-than-expected in the fourth quarter.

NZD/USD hit 0.7474 during late Asian trade, the pair’s highest since March 3; the pair subsequently consolidated at 0.7467, surging 0.84%.

The pair was likely to find support at 0.7374, Wednesday’s low and resistance at 0.7532, the high of March 1.

Earlier in the day, Statistics New Zealand said that gross domestic product rose 0.2% in the fourth quarter, after contracting 0.2% in the previous quarter. Analysts had expected fourth quarter GDP to expand 0.1%. From a year earlier, the economy grew 0.8%.

Exports, which make up 30% of the economy, increased 2.1%, led by milk, meat and lumber shipments, the report showed. Imports rose 6.6%, the most since the first quarter of 2004, led by purchases of aircraft and tourist spending abroad.

The kiwi was also higher against the yen, with NZD/JPY up 0.85% to hit 60.42.

Later in the day, the Governor of the Reserve Bank of New Zealand, Alan Bollard was to speak, while the U.S. was to release government data on initial jobless claims and durable goods orders.


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