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Forex - NZD/USD rises after mixed N.Z. jobs data, RBNZ comments

Published 02/04/2015, 02:55 AM
Kiwi gains ground vs. greenback as Wheeler comments support
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Investing.com - The New Zealand dollar rose against its U.S. counterpart on Wednesday, after the release of mixed New Zealand employment data and as Reserve Bank of New Zealand Governor Graeme Wheeler signaled that borrowing costs should remain on hold for some time.

NZD/USD hit 0.7449 during late Asian trade, the pair's highest since January 28; the pair subsequently consolidated at 0.7427, advancing 0.94%.

The pair was likely to find support at 0.7290, the session low and resistance at 0.7533, the high of January 13.

In a report, Statistics New Zealand said that the number of employed people rose by 1.2% in the last quarter, beating expectations for a 0.8% gain. The employment change for the third quarter was revised to a 0.9% increase from a previously estimated 0.8% rise.

The report also showed that New Zealand's unemployment rate rose to 5.7% in the fourth quarter of 2014 from 5.4% in the three months to September. Analysts had expected the unemployment rate to tick down to 5.3% in the last quarter.

Separately, speaking at Canterbury Employers' Chamber of Commerce, RBNZ Governor Graeme Wheeler said that interest rates will remain on hold for a prolonged period of time because of the strength of the economy and low inflation.

The comments came a day after the Reserve Bank of Australia surprised markets by lowering its benchmark interest rate to a new record-low 2.25% from 2.50% at the conclusion of its monthly policy meeting.

Market sentiment also strengthened after the Greek government outlined on Tuesday its plans to renegotiate the terms of its €140 billion bailout, retreating from election pledges to demand a debt write-down.

The move eased concerns over a conflict with the country’s creditors which could lead to its exit from the euro zone.

The kiwi was higher against the euro, with EUR/NZD tumbling 0.95% to 1.5450.

Later in the day, the U.S. was to release a report on ADP nonfarm payrolls. In addition, the Institute of Supply Management was to produce data on non-manufacturing activity.

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