Forex - NZD/USD rises on new Italy hopes

Published 11/14/2011, 02:41 AM
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EUR/NZD
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Investing.com - The New Zealand dollar opened higher against its U.S. counterpart on Monday, as concerns over Italy's debt crisis eased and after better-than-expected domestic retail sales data.

NZD/USD hit 0.7917 during late Asian trade, the pair's highest since November 9; the pair subsequently consolidated at 0.7867, still up 0.18%.

The pair was likely to find support at 0.7730, the low of November 10 and resistance at 0.7996, the high of November 7.

The kiwi found support as market sentiment strengthened after Italy's president appointed former European Commissioner Mario Monti to head a new government charged with implementing urgent reforms to end a crisis that has endangered the whole euro zone.

Monti began immediately to work on forming a new national unity government that will be charged with the difficult task of crushing the country's surging debt.

Meanwhile, investors remained cautious ahead of a EUR3 billion Italian 5-year bond auction, later in the day.

In New Zealand, official data showed that core retail sales rose far more-than-expected in the third-quarter, jumping 2.4% after a 1.1% increase the previous quarter.

The report also showed that retail sales advanced 2.2% after a 1.0% rise in the second quarter. Analysts had expected retail sales to rise 0.6% in the third quarter.

Elsewhere, the kiwi was also up against the euro with EUR/NZD easing down 0.06%, to hit 1.7499.

Also Monday, a preliminary government report said that Japan's GDP rose 1.5% in the third quarter, in line with expectations. The previous quarter's figure was revised down from minus 0.3% to minus 0.5%.

Japan is New Zealand's second largest export partner.

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