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Forex - NZD/USD rallies to over 3-week highs on Bernanke comments

Published 07/11/2013, 02:59 AM
Updated 07/11/2013, 03:04 AM
NZD/USD
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AUD/NZD
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Investing.com - The New Zealand dollar rallied to over three-week highs against its U.S. counterpart on Thursday, as dovish comments by Federal Reserve Chairman Ben Bernanke weighed heavily on demand for the greenback.

NZD/USD hit 0.7969 during late Asian trade, the pair's highest since June 19; the pair subsequently consolidated at 0.7929, rallying 1.21%.

The pair was likely to find support at 0.7780, Wednesday's low and resistance at 0.8054, the high of June 19.

The greenback weakened broadly after Bernanke said the Fed will continue to maintain accommodative monetary policy for the foreseeable future, citing low levels of inflation and the high unemployment rate.

The comments came after the minutes of the central bank’s June policy meeting showed that Fed policymakers remain divided over when to begin tapering its USD85 billion-a-month asset purchase program.

In New Zealand, data showed that the Business NZ Manufacturing Index fell to 54.7 last month, from a reading of 59.0 in May.

The kiwi was higher against the Australian dollar with AUD/NZD slipping 0.17%, to hit 1.1679.

Also Thursday, official data showed that Australia's economy added 10,300 jobs in June, confounding expectations for a 2,500 decline, after a 700 fall the previous month.

The report also showed that Australia's unemployment rate ticked up to 5.7% last month, from 5.6% in May. Analysts had expected the unemployment rate to remain unchanged in June.

Separately, the Melbourne Institute said inflation expectations rose to 2.6% in June, fron 2.3% the previous month.

Later in the day, the U.S. was to release the weekly report on initial jobless claims.


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