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Forex - NZD/USD rises ahead of RBNZ policy statement

Published 06/11/2014, 02:58 AM
Kiwi gains ground vs. greenback, eyes on RBNZ
NZD/USD
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AUD/NZD
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Investing.com - The New Zealand dollar rose against its U.S. counterpart on Wednesday, as markets eyed the Reserve Bank of New Zealand's upcoming policy statement, due later in the day.

NZD/USD hit 0.8557 during late Asian trade, the pair's highest since May 28; the pair subsequently consolidated at 0.8547, gaining 0.22%.

The pair was likely to find support at 0.8480, the low of June 9 and resistance at 0.8632, the high of May 20.

The New Zealand dollar strengthened as the RBNZ was widely expected to raise its benchmark interest rate by 0.25% at its monthly policy meeting later in the day.

Meanwhile, demand for the dollar remained supported by higher U.S. Treasury yields. The yield on the U.S. 10-year Treasury note rose to 2.64% on Tuesday, its highest in a month.

The kiwi was higher against the Australian dollar, with AUD/NZD slipping 0.18% to 1.0973.

Also Wednesday, the Westpac Banking Corporation sent consumer sentiment in Australia rose 0.2% in June, after a 6.8% decline the previous month.

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