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Forex - NZD/USD rises after better-than-expected PPI data

Published 05/18/2011, 03:16 AM
NZD/USD
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AUD/NZD
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Investing.com – The New Zealand dollar rose to a three-day high against its U.S. counterpart on Wednesday, boosted by gains in commodities and after stronger-than-expected data on producer price inflation.

NZD/USD hit 0.7912 during late Asian trade, the pair’s highest since May 13; the pair subsequently consolidated at 0.7892, gaining 0.51%.

The pair was likely to find support at 0.7763, Tuesday’s low and resistance at 0.7964, the high of May 13.

Statistics New Zealand said producer input prices gained 2.2% in the first three months of the year from 0.9% the previous quarter and output prices advanced 1.7%. Analysts had expected PPI to increase by 0.6% in the first quarter.

Elsewhere, a report showed that New Zealand’s consumer confidence rose in May for the first time in four months.

ANZ National Bank said its index of consumer confidence rose to 103.2 from 101.4 in April. A number greater than 100 shows that optimists outnumber pessimists.

The kiwi was also higher against its Australian cousin, with AUD/NZD shedding 0.34% to hit 1.3487.

Earlier in the day, Moody's downgraded the debt ratings of Australia’s four largest banks, citing their dependence on global lending markets.

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