Investing.com – The New Zealand dollar rebounded from a two-week low against its U.S. counterpart on Wednesday, as market sentiment improved and after data showing that Australia’s economy grew more-than-expected in the second quarter.
NZD/USD hit 0.8286 during late Asian trade, the daily high; the pair subsequently consolidated at 0.8277, gaining 0.62%.
The pair was likely to find support at 0.8204, Tuesday’s low and resistance at 0.8365, the high of the same day.
Earlier in the day, official data showed that Australia’s economy grew at the fastest rate in four years in the second quarter.
The Australian Bureau of Statistics said gross domestic product expanded by 1.2% in the second quarter, after contracting by a revised 0.9% in the three months to March. Economists had expected GDP to increase by 1% in the second quarter.
However, investors remained wary amid ongoing concerns over the sovereign debt crisis in the euro zone, ahead of a vote in Germany’s constitutional court on the legality of the bailout for Greece and fears over a renewed recession in the U.S.
Meanwhile, the kiwi was lower against its Australian cousin, with AUD/NZD rising 0.47% to hit 1.2803.
Also Wednesday, Reserve Bank of Australia Glenn Stevens signaled that interest rates are likely to remain on hold in the coming months as turmoil in the global markets clouds the outlook for domestic growth.
NZD/USD hit 0.8286 during late Asian trade, the daily high; the pair subsequently consolidated at 0.8277, gaining 0.62%.
The pair was likely to find support at 0.8204, Tuesday’s low and resistance at 0.8365, the high of the same day.
Earlier in the day, official data showed that Australia’s economy grew at the fastest rate in four years in the second quarter.
The Australian Bureau of Statistics said gross domestic product expanded by 1.2% in the second quarter, after contracting by a revised 0.9% in the three months to March. Economists had expected GDP to increase by 1% in the second quarter.
However, investors remained wary amid ongoing concerns over the sovereign debt crisis in the euro zone, ahead of a vote in Germany’s constitutional court on the legality of the bailout for Greece and fears over a renewed recession in the U.S.
Meanwhile, the kiwi was lower against its Australian cousin, with AUD/NZD rising 0.47% to hit 1.2803.
Also Wednesday, Reserve Bank of Australia Glenn Stevens signaled that interest rates are likely to remain on hold in the coming months as turmoil in the global markets clouds the outlook for domestic growth.