Forex - NZD/USD hits more than 5-month high ahead of E.Z. talks

Published 02/20/2012, 02:58 AM
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Investing.com - The New Zealand dollar jumped to a more than five-month high against its U.S. counterpart on Monday, as sentiment improved on hopes euro zone leaders will approve Greece’s second bailout package at a meeting later in the day.

NZD/USD hit 1.0816 during late Asian trade, the pair’s highest since September 5; the pair subsequently consolidated at 0.8398, rising 0.93%.

The pair was likely to find support at 0.8317, the low of February 17 and resistance at 0.8467, the high of August 29.

Euro zone finance ministers were to meet in Brussels later Monday to discuss the approval of a much needed EUR130 billion bailout for Greece.

Without a bailout, Athens faces the threat of defaulting when a EUR14.5 billion bond redemption comes due on March 20.

Sentiment was also boosted after China cut the amount of cash banks must hold in their reserves on Saturday, boosting lending capacity in an effort to spur the world's second-biggest economy.

In New Zealand, official data showed earlier that producer price inflation input rose more-than-expected in the fourth quarter, rising 0.5% after a 0.6% increase the previous quarter.

Analysts had expected PPI input to rise 0.4% in the fourth quarter.

Elsewhere, the kiwi was higher against the euro with EUR/NZD shedding 0.43%, to hit 1.5718.

Markets in the U.S. remained closed for the Presidents Day holiday.


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