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Forex - NZD/USD rises to fresh 1-month highs after Fed minutes

Published 02/19/2015, 02:55 AM
Kiwi hits new highs vs. softer greenback
NZD/USD
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AUD/NZD
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Investing.com - The New Zealand dollar rose to fresh one-month highs against its U.S. counterpart on Thursday, as demand for the greenback weakened after the Federal Reserve signalled that interest rates could remain on hold for a longer period of time.

NZD/USD hit 0.7573 during late Asian trade, the pair's highest since January 21; the pair subsequently consolidated at 0.7555, adding 0.15%.

The pair was likely to find support at 0.7498, Wednesday's low and resistance at 0.7712, the high of January 21.

Sentiment on the greenback remained fragile after Fed policymakers expressed concern that raising interest rates too soon could dampen the U.S. economic recovery, according to the minutes of central bank's January meeting.

"Clearly, there are some more dovish members that feel the economy is still not strong enough to support steady pricing, so that is holding the Fed back from normalizing policy," the Fed said.

The kiwi was higher against the Australian dollar, with AUD/NZD shedding 0.41% to 1.0310.

Later in the day, the U.S. was to publish a report on manufacturing activity in the Philadelphia region and the weekly government figures on initial jobless claims.

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