Investing.com - The New Zealand dollar pushed higher against its U.S. counterpart on Tuesday, as markets looked ahead to testimony by Federal Reserve Chairman Ben Bernanke later in the day, but weak domestic inflation data checked the kiwi’s gains.
NZD/USD hit 0.8004 during late Asian trade, the pair’s highest since July 6; the pair subsequently consolidated at 0.7991, gaining 0.17%.
The pair was likely to find support at 0.7935, Monday’s low and resistance at 0.8046, the high of July 6.
The greenback weakened ahead of testimony to the Senate by Fed Chairman Ben Bernanke later Tuesday and Wednesday, amid ongoing speculation over whether the U.S. central bank will introduce more easing to stimulate the economy.
Expectations for another round of easing by the bank were boosted on Monday after official data showing a third consecutive monthly decline in U.S. retail sales in June.
But the kiwi’s gains were limited after official data showed that consumer price inflation in New Zealand rose less-than-expected in the three months to June, adding to the view that the central bank will keep interest rates on hold in the coming months.
Statistics New Zealand said that CPI rose to a seasonally adjusted 0.3%, from 0.5% in the first quarter, disappointing expectations for an increase of 0.5%.
The kiwi was trading close to a record high against the euro, with EUR/NZD dipping 0.05% to 1.5371, but was lower against its Australian cousin, with AUD/NZD up 0.30% to 1.2881.
The Aussie found support after the minutes of the Reserve Bank of Australia’s July meeting indicated that policymakers are not planning any further rate cuts in the coming months.
NZD/USD hit 0.8004 during late Asian trade, the pair’s highest since July 6; the pair subsequently consolidated at 0.7991, gaining 0.17%.
The pair was likely to find support at 0.7935, Monday’s low and resistance at 0.8046, the high of July 6.
The greenback weakened ahead of testimony to the Senate by Fed Chairman Ben Bernanke later Tuesday and Wednesday, amid ongoing speculation over whether the U.S. central bank will introduce more easing to stimulate the economy.
Expectations for another round of easing by the bank were boosted on Monday after official data showing a third consecutive monthly decline in U.S. retail sales in June.
But the kiwi’s gains were limited after official data showed that consumer price inflation in New Zealand rose less-than-expected in the three months to June, adding to the view that the central bank will keep interest rates on hold in the coming months.
Statistics New Zealand said that CPI rose to a seasonally adjusted 0.3%, from 0.5% in the first quarter, disappointing expectations for an increase of 0.5%.
The kiwi was trading close to a record high against the euro, with EUR/NZD dipping 0.05% to 1.5371, but was lower against its Australian cousin, with AUD/NZD up 0.30% to 1.2881.
The Aussie found support after the minutes of the Reserve Bank of Australia’s July meeting indicated that policymakers are not planning any further rate cuts in the coming months.