Investing.com – New Zealand’s dollar was up against its U.S. counterpart on Wednesday, rising to a fresh daily high after New Zealand’s central bank governor said “very loose” monetary policy in the U.S. was hampering his country’s economic recovery.
NZD/USD hit 0.7850 during European morning trade, a daily high; the pair subsequently consolidated at 0.7820, gaining 0.59%.
The pair was likely to find support at 0.7700, the low of November 3 and resistance at 0.7911, Tuesday’s high.
Earlier in the day, the Reserve Bank of New Zealand released its financial stability report which said that the Federal Reserve’s intention to maintain very loose monetary policy could result in “unwanted appreciation in other free-floating currencies.”
“A sustained rebalancing of economic activity toward the tradables sector will be difficult to achieve with the New Zealand dollar remaining at relatively high levels,” Bollard said. The kiwi’s gains “reflect easy monetary conditions and weak economic activity in the major developed economies.”
The kiwi was also up against the euro, with EUR/NZD shedding 0.53% to hit 1.7611.
Later in the day, the U.S. was to release its weekly report on initial jobless claims. The data was being released one day earlier than usual due to a U.S. public holiday.
NZD/USD hit 0.7850 during European morning trade, a daily high; the pair subsequently consolidated at 0.7820, gaining 0.59%.
The pair was likely to find support at 0.7700, the low of November 3 and resistance at 0.7911, Tuesday’s high.
Earlier in the day, the Reserve Bank of New Zealand released its financial stability report which said that the Federal Reserve’s intention to maintain very loose monetary policy could result in “unwanted appreciation in other free-floating currencies.”
“A sustained rebalancing of economic activity toward the tradables sector will be difficult to achieve with the New Zealand dollar remaining at relatively high levels,” Bollard said. The kiwi’s gains “reflect easy monetary conditions and weak economic activity in the major developed economies.”
The kiwi was also up against the euro, with EUR/NZD shedding 0.53% to hit 1.7611.
Later in the day, the U.S. was to release its weekly report on initial jobless claims. The data was being released one day earlier than usual due to a U.S. public holiday.