Investing.com - The New Zealand dollar was steady against its U.S. counterpart on Thursday, trading near five-month highs as news a U.S. budget deal was reached, avoiding the government a sovereign default, supported market sentiment.
NZD/USD hit 0.8446 during late Asian trade, the pair's highest since May 9; the pair subsequently consolidated at 0.8427, easing up 0.03%.
The pair was likely to find support at 0.8358, the low of October 15 and resistance at 0.8482, the high of May 9.
Market sentiment improved amid relief over the last minute deal to avert an unprecedented U.S. sovereign debt default.
The deal will fund the government until January 15 and raise the government borrowing limit until February 7. Both sides also agreed to talks over broad budget issues in an attempt to reach a longer-term deal by December 13.
The agreement came with just hours to spare before the deadline to raise the USD16.7 trillion debt ceiling.
President Barack Obama signed the bill into law early on Thursday morning and pledged to begin reopening the government "immediately."
However, investors remained concerned over the economic impact of the government shutdown and the possibility of another debt crisis, as the temporary solution does not resolve the underlying budgetary issues dividing Republicans and Democrats.
The kiwi was higher against the Australian dollar with AUD/NZD edging down 0.15%, to hit 1.1324.
Also Thursday, the National Bank of Australia said its business confidence index rose to 3 in the third quarter, from a reading of minus 1 in the three months to June.
Later in the day, the U.S. was to publish a report on initial jobless claims and the Philly Fed manufacturing index.
NZD/USD hit 0.8446 during late Asian trade, the pair's highest since May 9; the pair subsequently consolidated at 0.8427, easing up 0.03%.
The pair was likely to find support at 0.8358, the low of October 15 and resistance at 0.8482, the high of May 9.
Market sentiment improved amid relief over the last minute deal to avert an unprecedented U.S. sovereign debt default.
The deal will fund the government until January 15 and raise the government borrowing limit until February 7. Both sides also agreed to talks over broad budget issues in an attempt to reach a longer-term deal by December 13.
The agreement came with just hours to spare before the deadline to raise the USD16.7 trillion debt ceiling.
President Barack Obama signed the bill into law early on Thursday morning and pledged to begin reopening the government "immediately."
However, investors remained concerned over the economic impact of the government shutdown and the possibility of another debt crisis, as the temporary solution does not resolve the underlying budgetary issues dividing Republicans and Democrats.
The kiwi was higher against the Australian dollar with AUD/NZD edging down 0.15%, to hit 1.1324.
Also Thursday, the National Bank of Australia said its business confidence index rose to 3 in the third quarter, from a reading of minus 1 in the three months to June.
Later in the day, the U.S. was to publish a report on initial jobless claims and the Philly Fed manufacturing index.