Investing.com - The New Zealand dollar rose to ten-month highs against its U.S. counterpart on Thursday, after the Reserve Bank of New Zealand raised interest rates and said it will end stimulus measures earlier than expected.
NZD/USD hit 0.8573 during late Asian trade, the pair's highest since May 1, 2013; the pair subsequently consolidated at 0.8577, climbing 0.62%.
The pair was likely to find support at 0.8512, the session low and resistance at 0.8583, the high of May 1, 2013.
In a widely expected move, the RBNZ raised its benchmark interest rate to 2.75% from a record low 2.5%, becoming the first developed nation to exit record-low borrowing costs.
Commenting on the decision, RBNZ Chairman Graham Wheeler said the bank expects to raise the key rate by about 2 percentage points over two years, with the pace depending on economic data.
The central bank also raised its growth forecast to 3.3% in the year ending March 31, faster than the 2.7% pace projected in December.
Separately, data showed that Chinese industrial production rose 8.6% in the first two months of 2014, missing market expectations for an increase of 9.5%, while Chinese retail sales rose by a smaller-than-forecast 11.8% in the same period.
China is New Zealand's second biggest export partner.
The kiwi was also higher against the euro, with EUR/NZD shedding 0.28% to 1.6263.
Later in the day, the U.S. was to release data on retail sales and import prices, in addition to the weekly government report on initial jobless claims.