Investing.com – The New Zealand dollar surged to an all-time high against its U.S. counterpart on Wednesday, after a private survey showed business confidence improved in July, adding to expectations for a near-term rate hike by the Reserve Bank of New Zealand.
NZD/USD hit 0.8764 during late Asian trade, the pair’s highest since exchange rate controls ended in March 1985; the pair subsequently consolidated at 0.8751, gaining 0.52%.
The pair was likely to find support at 0.8609, Tuesday’s low and short-term resistance at 0.8800.
The National Bank of New Zealand said business confidence rose to a 14-month high in July, boosted by record-low borrowing costs and higher commodity prices.
The report said 47.6% of companies expect the economy will improve over the next year, the highest level since May 2010, and up from 46.5% in June. A second measure of expectations for companies’ sales and earnings rose to 43.7%, compared with 38.7% in June.
The RBNZ was expected to keep it benchmark interest rate unchanged at its policy meeting on Thursday, but was expected to signal that monetary tightening was imminent.
Meanwhile, the kiwi was down against its Australian cousin, with AUD/NZD rising 0.43% to hit 1.2638.
Earlier in the day, the Australian dollar strengthened broadly after better-than-expected data on consumer price inflation added to expectations for a near-term rate hike by the country’s central bank.
NZD/USD hit 0.8764 during late Asian trade, the pair’s highest since exchange rate controls ended in March 1985; the pair subsequently consolidated at 0.8751, gaining 0.52%.
The pair was likely to find support at 0.8609, Tuesday’s low and short-term resistance at 0.8800.
The National Bank of New Zealand said business confidence rose to a 14-month high in July, boosted by record-low borrowing costs and higher commodity prices.
The report said 47.6% of companies expect the economy will improve over the next year, the highest level since May 2010, and up from 46.5% in June. A second measure of expectations for companies’ sales and earnings rose to 43.7%, compared with 38.7% in June.
The RBNZ was expected to keep it benchmark interest rate unchanged at its policy meeting on Thursday, but was expected to signal that monetary tightening was imminent.
Meanwhile, the kiwi was down against its Australian cousin, with AUD/NZD rising 0.43% to hit 1.2638.
Earlier in the day, the Australian dollar strengthened broadly after better-than-expected data on consumer price inflation added to expectations for a near-term rate hike by the country’s central bank.