Investing.com – New Zealand’s dollar was up against its U.S. counterpart on Wednesday, rebounding from a 7-day low, after three regional Federal Reserve presidents indicated that the bank will begin fresh monetary easing.
NZD/USD hit 0.7492 during European early afternoon trade, a daily high; the pair subsequently consolidated at 0.7481, gaining 0.51%.
The pair was likely to find support at 0.7356, the low of October 5 and resistance at 0.7515, the high of October 15.
Late Tuesday, New Zealand’s central bank governor Alan Bollard said that current monetary policy is acting as a stimulant to the economy and current expectations in terms of interest rate changes are not unreasonable.
Forecasts that the official cash rate will be unchanged until next year “wouldn’t seem an unreasonable expectation,” Bollard said, before adding, “rates remain very, very stimulatory”.
On September 16, the Reserve Bank of New Zealand kept its benchmark interest rate unchanged at 3% and said the pace of further increases was likely to be moderate because the economy wasn’t growing as fast as expected.
Meanwhile, the kiwi was down against the euro, with EUR/NZD gaining 0.22% to hit 1.8485.
Later in the day, the Federal Reserve was to release its Beige Book, a summary of the data the bank examines before setting the benchmark interest rate.
NZD/USD hit 0.7492 during European early afternoon trade, a daily high; the pair subsequently consolidated at 0.7481, gaining 0.51%.
The pair was likely to find support at 0.7356, the low of October 5 and resistance at 0.7515, the high of October 15.
Late Tuesday, New Zealand’s central bank governor Alan Bollard said that current monetary policy is acting as a stimulant to the economy and current expectations in terms of interest rate changes are not unreasonable.
Forecasts that the official cash rate will be unchanged until next year “wouldn’t seem an unreasonable expectation,” Bollard said, before adding, “rates remain very, very stimulatory”.
On September 16, the Reserve Bank of New Zealand kept its benchmark interest rate unchanged at 3% and said the pace of further increases was likely to be moderate because the economy wasn’t growing as fast as expected.
Meanwhile, the kiwi was down against the euro, with EUR/NZD gaining 0.22% to hit 1.8485.
Later in the day, the Federal Reserve was to release its Beige Book, a summary of the data the bank examines before setting the benchmark interest rate.