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Forex - NZD/USD hits record high after U.S. debt deal reached

Published 08/01/2011, 03:07 AM
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Investing.com – The New Zealand dollar advanced to a record high against its U.S. counterpart on Monday, after President Barack Obama announced that Congressional leaders had reached an agreement to raise the U.S. debt ceiling.

NZD/USD hit 0.8842 during late Asian trade, the pair’s highest since exchange rate controls ended in March 1985; the pair subsequently consolidated at 0.8823, gaining 0.34%.

The pair was likely to find support at 0.8675, the low of July 28 and short-term resistance at 0.8900.

President Obama and Senate leaders announced Sunday night that they had reached agreement on a framework deal that will cut spending and increase the USD14.3 trillion federal debt ceiling, in order to avert a U.S. default.

The Senate is expected to pass the deal which raises the debt ceiling and cuts about USD2.4 trillion from the deficit over the next decade.

Meanwhile, the kiwi was fractionally lower against its Australian cousin, with AUD/NZD easing up 0.05% to hit 1.2527.

Later in the day, the U.S. Institute of Supply Management was to publish data on manufacturing activity.

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