Investing.com - The New Zealand dollar rose to two-and-a-half week highs against its U.S. counterpart, as concerns over the current U.S. budget deadlock continued to dampen demand for the greenback.
NZD/USD hit 0.8360 during late Asian trade, the pair's highest since September 24; the pair subsequently consolidated at 0.8345, rising 0.28%.
The pair was likely to find support at 0.8268, the low of October 11 and resistance at 0.8401, the high of September 20.
Negotiations between U.S. President Barack Obama and House Republicans broke down over the weekend, fuelling concerns that a deal to raise the government borrowing limit would not be struck ahead of Thursday’s deadline to avert an unprecedented U.S. sovereign debt default.
Central bankers and finance ministers in Washington for the annual meeting of the International Monetary Fund and World Bank over the weekend called for “urgent action” to break the deadlock.
Elsewhere, data on Sunday showed that China’s trade surplus narrowed sharply in September as exports declined unexpectedly, fuelling concerns over the global economy.
China’s trade surplus narrowed to USD15.2 billion last month from a surplus of USD28.6 billion in August, compared to estimates for a surplus of USD27.7 billion.
China is New Zealand's second biggest export partner.
The kiwi was higher against the Australian dollar with AUD/NZD shedding 0.28%, to hit 1.1343.
Also Monday, official data showed that home loans in Australia fell 3.9% in August, exceeding expectations for a 2.5% decline, after a downwardly revised 2.1% rise the previous month.
NZD/USD hit 0.8360 during late Asian trade, the pair's highest since September 24; the pair subsequently consolidated at 0.8345, rising 0.28%.
The pair was likely to find support at 0.8268, the low of October 11 and resistance at 0.8401, the high of September 20.
Negotiations between U.S. President Barack Obama and House Republicans broke down over the weekend, fuelling concerns that a deal to raise the government borrowing limit would not be struck ahead of Thursday’s deadline to avert an unprecedented U.S. sovereign debt default.
Central bankers and finance ministers in Washington for the annual meeting of the International Monetary Fund and World Bank over the weekend called for “urgent action” to break the deadlock.
Elsewhere, data on Sunday showed that China’s trade surplus narrowed sharply in September as exports declined unexpectedly, fuelling concerns over the global economy.
China’s trade surplus narrowed to USD15.2 billion last month from a surplus of USD28.6 billion in August, compared to estimates for a surplus of USD27.7 billion.
China is New Zealand's second biggest export partner.
The kiwi was higher against the Australian dollar with AUD/NZD shedding 0.28%, to hit 1.1343.
Also Monday, official data showed that home loans in Australia fell 3.9% in August, exceeding expectations for a 2.5% decline, after a downwardly revised 2.1% rise the previous month.