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Forex - NZD/USD rises on upbeat N.Z. GDP report

Published 12/18/2014, 02:59 AM
Kiwi gains ground vs. greenback after GDP data
NZD/USD
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EUR/NZD
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Investing.com - The New Zealand dollar rose against its U.S. counterpart on Thursday, hovering close to one-week lows even as data showed that the New Zealand economy expanded at a faster rate than expected in the third quarter.

NZD/USD hit 0.7733 during late Asian trade, the session high; the pair subsequently consolidated at 0.7733, gaining 0.31%

The pair was likely to find support at 0.7659, the low of December 10 and resistance at 0.7804, Wednesday's high.

In a report, Statistics New Zealand said the country's gross domestic product increased by 1.0% in the third quarter, compared to expectations for a 0.7% rise and up from a growth rate of 0.7% in the three months to June.

Meanwhile, the greenback also found support as the Federal Reserve said it would be "patient" before raising rates, guidance which it said is consistent with earlier assurances statement that rates would stay low "for a considerable time."

The central bank acknowledged the improvement in the U.S. labor market and noted that the economy is making progress toward its goals in inflation and employment.

At the bank’s post policy meeting press conference Fed Chair Janet Yellen said the Fed was unlikely to raise rates for the "next couple of meetings" indicating that a move in April at the earliest is possible.

The kiwi was higher against the euro, with EUR/NZD declining 0.62% to 1.5926.

Later in the day, the U.S. was to release data on initial jobless claims and manufacturing activity in the Philadelphia region.

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