Investing.com - The New Zealand dollar rose against its U.S. counterpart on Wednesday, as it recovered from comments by Reserve Bank of New Zealand Governor Graeme Wheeler, signaling the possibility for further rate cuts.
NZD/USD hit 0.6688 during late Asian trade, the session high; the pair subsequently consolidated at 0.6683, gaining 0.60%.
The pair was likely to find support at 0.6532, the low of October 7 and resistance at 0.6741, the high of October 12 and a two-month peak.
In a speech on Tuesday, RBNZ Governor Graeme Wheeler said further interest rate cuts are possible even as recent economic data has been more encouraging.
Meanwhile, markets were still jittery after official data released on Tuesday showed that Chinese imports tumbled 20.4% in September on a year-over-year basis, the eleventh straight monthly decline.
Exports fell by a smaller than forecast 3.7% from a year earlier, resulting in a trade surplus of $60.34 billion.
The weak data underlined concerns over weakening demand for the world’s second largest economy.
China is New Zealand's second biggest export partner.
The kiwi was higher against the Australian dollar, with AUD/NZD declining 0.83% to 1.0815.
Earlier Wednesday, the Westpac Banking Corporation said that its index of consumer sentiment in Australia rose 4.2% in August, beating expectations for a 3.0% gain, after a 5.6% decline the previous month.