Investing.com – The New Zealand dollar was trading close to a two-month low against its U.S. counterpart on Thursday, amid speculation that the Reserve Bank of New Zealand will cut interest rates to support the economy after Tuesday’s devastating earthquake.
NZD/USD hit 0.743 during late Asian trade, the daily low; the pair subsequently consolidated at 0.7435, shedding 0.24%.
The pair was likely to find support at 0.7395, the low of December 23 and resistance at 0.749, the day’s high.
Earlier in the day, New Zealand’s central bank governor Alan Bollard said the bank was working quickly to assist in the recovery of access to the financial system and ensure markets “remain stable.”
“The Reserve Bank is ready and able to supply any cash required by banks,” Bollard said. “We have ample cash reserves and will issue cash to banks on any day required during this emergency situation.”
The kiwi was also lower against the euro, with EUR/NZD edging up 0.02% to hit 1.8438.
Later in the day, the U.S. was to publish reports on durable goods orders and initial jobless claims, as well as data on new home sales.
NZD/USD hit 0.743 during late Asian trade, the daily low; the pair subsequently consolidated at 0.7435, shedding 0.24%.
The pair was likely to find support at 0.7395, the low of December 23 and resistance at 0.749, the day’s high.
Earlier in the day, New Zealand’s central bank governor Alan Bollard said the bank was working quickly to assist in the recovery of access to the financial system and ensure markets “remain stable.”
“The Reserve Bank is ready and able to supply any cash required by banks,” Bollard said. “We have ample cash reserves and will issue cash to banks on any day required during this emergency situation.”
The kiwi was also lower against the euro, with EUR/NZD edging up 0.02% to hit 1.8438.
Later in the day, the U.S. was to publish reports on durable goods orders and initial jobless claims, as well as data on new home sales.