Investing.com - The New Zealand dollar rose against its U.S. counterpart on Thursday, after the Reserve Bank of New Zealand left interest rates unchanged but suggested possible increases for next year.
NZD/USD hit 0.8292 during early European trade, the session high; the pair subsequently consolidated at 0.8282, rising 0.29%.
The pair was likely to find support at 0.8201, Wednesday's low and resistance at 0.8342, the high of November 15.
In a widely expected move, the RBNZ held its benchmark interest rate at 2.50% but said it will start raising interest rates in the first half of next year as the economy strengthens.
"The bank will increase the official cash rate as needed in order to keep future average inflation near the 2% target midpoint," RBNZ Governor Graeme Wheeler said.
Meanwhile, the greenback found support as news that U.S. Congressional leaders reached an agreement on a two year budget deal was seen as increasing the likelihood that the Federal Reserve would begin to scale back its USD85 billion a month asset purchase program at next week’s policy meeting.
The kiwi was also higher against the euro, with EUR/NZD shedding 0.20% to 1.6657.
Later in the day, the U.S. was to produce data on retail sales, as well as the weekly report on initial jobless claims.
NZD/USD hit 0.8292 during early European trade, the session high; the pair subsequently consolidated at 0.8282, rising 0.29%.
The pair was likely to find support at 0.8201, Wednesday's low and resistance at 0.8342, the high of November 15.
In a widely expected move, the RBNZ held its benchmark interest rate at 2.50% but said it will start raising interest rates in the first half of next year as the economy strengthens.
"The bank will increase the official cash rate as needed in order to keep future average inflation near the 2% target midpoint," RBNZ Governor Graeme Wheeler said.
Meanwhile, the greenback found support as news that U.S. Congressional leaders reached an agreement on a two year budget deal was seen as increasing the likelihood that the Federal Reserve would begin to scale back its USD85 billion a month asset purchase program at next week’s policy meeting.
The kiwi was also higher against the euro, with EUR/NZD shedding 0.20% to 1.6657.
Later in the day, the U.S. was to produce data on retail sales, as well as the weekly report on initial jobless claims.