Investing.com - The New Zealand dollar edged up to a nine-month high against its U.S. counterpart on Wednesday, as expectations for fresh easing measures by the Federal Reserve weighed on the greenback ahead of the central bank's policy statement later in the day.
NZD/USD hit 0.8404 during late Asian trade, the pair's highest since February 29; the pair subsequently consolidated at 0.8406, adding 0.16%.
The pair was likely to find support at 0.8335, Tuesday's low and resistance at 0.8472, the high of February 29.
The U.S. central bank was expected to announce new easing steps to replace its Operation Twist program, which expires this month following its policy setting meeting later Wednesday.
Meanwhile, investors remained cautious as they awaited fresh developments in negotiations to avoid the U.S. fiscal cliff amid concerns that the automatic tax hikes and spending cuts due to take effect in early 2013 could derail the U.S. recovery.
The kiwi was steady against the Australian dollar with AUD/NZD slipping 0.05%, to hit 1.2537.
Also Wednesday, the Westpac Banking Corporation said in a report that its index of consumer sentiment for Australia deteriorated to minus 4.10 in December from a reading of 5.20 the previous month.
Later in the day, the Federal Reserve was to announce the federal funds rate, which was to be accompanied by the bank’s rate statement and followed by a press conference with Chairman Ben Bernanke to discuss the rate decision and the economic outlook.
The U.S. was also to release official data on import prices and crude oil inventories.
NZD/USD hit 0.8404 during late Asian trade, the pair's highest since February 29; the pair subsequently consolidated at 0.8406, adding 0.16%.
The pair was likely to find support at 0.8335, Tuesday's low and resistance at 0.8472, the high of February 29.
The U.S. central bank was expected to announce new easing steps to replace its Operation Twist program, which expires this month following its policy setting meeting later Wednesday.
Meanwhile, investors remained cautious as they awaited fresh developments in negotiations to avoid the U.S. fiscal cliff amid concerns that the automatic tax hikes and spending cuts due to take effect in early 2013 could derail the U.S. recovery.
The kiwi was steady against the Australian dollar with AUD/NZD slipping 0.05%, to hit 1.2537.
Also Wednesday, the Westpac Banking Corporation said in a report that its index of consumer sentiment for Australia deteriorated to minus 4.10 in December from a reading of 5.20 the previous month.
Later in the day, the Federal Reserve was to announce the federal funds rate, which was to be accompanied by the bank’s rate statement and followed by a press conference with Chairman Ben Bernanke to discuss the rate decision and the economic outlook.
The U.S. was also to release official data on import prices and crude oil inventories.