Investing.com - The New Zealand dollar rose against its U.S. counterpart on Tuesday, as speculation the Federal Reserve could hold the current level of its monthly asset purchases for an extended period of time persisted.
NZD/USD hit 0.8344 during late Asian trade, the session high; the pair subsequently consolidated at 0.8359, up 0.26%.
The pair was likely to find support at 0.8268, the low of November 15 and resistance at 0.8415, the high of November 6.
Sentiment on the greeback remained fragile after dovish comments by Fed Chairwoman nominee Janet Yellen last week were seen as cementing the view that the bank will continue its USD85 billion-a-month asset purchase program well into the beginning of next year.
However, Federal Reserve Bank of New York President William C. Dudley said Monday he was growing more hopeful that the economy is improving, and added that the fiscal uncertainties that acted as a drag on growth are likely to abate in the coming months.
Investors were turning their attention to the minutes of the Fed’s October meeting, as well as a speech by Fed Chairman Ben Bernanke on Wednesday for further indications on the future course of U.S. monetary policy.
Earlier Tuesday, the Reserve Bank of New Zealand said its inflation expectations for the next two years ticked down to 2.3% in the third quarter, from 2.4% in the three months to June.
The kiwi was lower against the Australian dollar, with AUD/NZD gaining 0.36%, to hit 1.1287.
In the minutes of its latest policy meeting, the Reserve Bank of Australia said there was "mounting evidence" rate cuts were working although it retained the option of loosening policy further to support growth, adding that the Aussie was still "uncomfortably high".
Later in the day, the U.S. was to release data on the employment cost index, while New Zealand was to publish data on producer price inflation input.
NZD/USD hit 0.8344 during late Asian trade, the session high; the pair subsequently consolidated at 0.8359, up 0.26%.
The pair was likely to find support at 0.8268, the low of November 15 and resistance at 0.8415, the high of November 6.
Sentiment on the greeback remained fragile after dovish comments by Fed Chairwoman nominee Janet Yellen last week were seen as cementing the view that the bank will continue its USD85 billion-a-month asset purchase program well into the beginning of next year.
However, Federal Reserve Bank of New York President William C. Dudley said Monday he was growing more hopeful that the economy is improving, and added that the fiscal uncertainties that acted as a drag on growth are likely to abate in the coming months.
Investors were turning their attention to the minutes of the Fed’s October meeting, as well as a speech by Fed Chairman Ben Bernanke on Wednesday for further indications on the future course of U.S. monetary policy.
Earlier Tuesday, the Reserve Bank of New Zealand said its inflation expectations for the next two years ticked down to 2.3% in the third quarter, from 2.4% in the three months to June.
The kiwi was lower against the Australian dollar, with AUD/NZD gaining 0.36%, to hit 1.1287.
In the minutes of its latest policy meeting, the Reserve Bank of Australia said there was "mounting evidence" rate cuts were working although it retained the option of loosening policy further to support growth, adding that the Aussie was still "uncomfortably high".
Later in the day, the U.S. was to release data on the employment cost index, while New Zealand was to publish data on producer price inflation input.