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Forex - NZD/USD steady after RBNZ holds rates

Published 01/31/2013, 02:54 AM
NZD/USD
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EUR/NZD
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Investing.com - The New Zealand dollar was steady against its U.S. counterpart on Thursday, after the Reserve Bank of New Zealand left interest rates unchanged, while the U.S. Federal Reserve reaffirmed its commitment to maintaining its easing program.

NZD/USD hit 0.8367 during late Asian trade, the session high; the pair subsequently consolidated at 0.8363, inching up 0.04%.

The pair was likely to find support at 0.8295, Wednesday's low and resistance at 0.8382, Wednesday's high.

In a widely expected move, the RBNZ left its benchmark interest rate unchanged at a record low 2.50%.

Commenting on the decision, RBNZ Governor Graeme Wheeler said "We expect economic growth to strengthen over the coming year, reducing spare capacity and bringing inflation slowly back towards the 2% target midpoint.”

In the U.S., the Fed said Wednesday that it will continue its USD85 billion a month quantitative easing program “if the outlook for the labor market does not improve substantially.”

The U.S. central bank also reiterated that it will continue to hold interest rates close to zero until the unemployment rate falls below 6.5%.

The kiwi was higher against the euro with EUR/NZD falling 0.13%, to hit 1.6211.

Later in the day, the U.S. was to release the weekly government report on initial jobless claims.


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