Forex - NZD/USD surges to 2-day high after Bollard remarks

Published 10/28/2010, 06:14 AM
NZD/USD
-
EUR/NZD
-
Investing.com – New Zealand’s dollar was up against its U.S. counterpart on Thursday, surging to a 2-day high after remarks by the country’s central bank governor, Alan Bollard.

NZD/USD hit 0.7508 during European morning trade, the pair’s highest since Tuesday; the pair subsequently consolidated at 0.7490, gaining 0.49%.

The pair was likely to find support at 0.7404, Wednesday’s low and short-term resistance at 0.7560, the high of October 25.

Earlier in the day, the Reserve Bank of New Zealand kept its official cash rate unchanged at 3.0% for the second consecutive month, in line with expectations.

In a rate statement following the announcement Bollard said, "While it is appropriate to keep the OCR on hold today, it remains likely that further removal of monetary policy support will be required at some stage".

The bank said strong growth in China, Australia and  emerging Asian markets would help offset the weak global economy, adding that high export prices and the reconstruction in Canterbury, which was hit by a major earthquake last month, will also support activity.

The kiwi was also up against the euro, with EUR/NZD slipping 0.03% to hit 1.8473.

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

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.