Investing.com - The New Zealand dollar was higher against its U.S. counterpart on Wednesday, as risk sentiment improved after upbeat Australian economic growth data and ahead of the European Central Bank’s rate decision, although euro zone debt concerns remained.
NZD/USD hit 0.7631 during late Asian trade, the pair’s highest since May 30; the pair subsequently consolidated at 0.7627, rising 0.86%.
The pair was likely to find support at 0.7540, the low of May 21 and resistance at 0.7673, the high of May 22.
The risk-related kiwi strengthened after official data showed earlier that first quarter economic growth in Australia outstripped expectations, with gross domestic product expanding 1.3%, well above forecasts for a gain of 0.5%.
Sentiment was also supported by expectations that the ECB could cut rates in a bid to help stabilize market sentiment.
Meanwhile, investors remained focused on developments in the euro zone after a teleconference of finance ministers from the Group of Seven industrialized nations on Tuesday ended with no immediate steps to soothe fears over the bloc’s debt crisis.
Market sentiment had come under pressure after Spain’s Treasury Minister Cristobal Montoro said that financial markets were effectively closed to Spain because of the current high level of the country’s borrowing costs.
Investors were also jittery after Moody’s ratings agency downgraded the credit ratings of six German lenders and Austria’s three largest banks, saying they face risks if the euro zone crisis deepens.
Elsewhere, the kiwi was lower against the Australian dollar with AUD/NZD adding 0.22%, to hit 1.2909.
Later in the day, the U.S. was to release revised data on nonfarm productivity, followed by government data on crude oil stockpiles, while the Federal Reserve was to release its Beige Book.
NZD/USD hit 0.7631 during late Asian trade, the pair’s highest since May 30; the pair subsequently consolidated at 0.7627, rising 0.86%.
The pair was likely to find support at 0.7540, the low of May 21 and resistance at 0.7673, the high of May 22.
The risk-related kiwi strengthened after official data showed earlier that first quarter economic growth in Australia outstripped expectations, with gross domestic product expanding 1.3%, well above forecasts for a gain of 0.5%.
Sentiment was also supported by expectations that the ECB could cut rates in a bid to help stabilize market sentiment.
Meanwhile, investors remained focused on developments in the euro zone after a teleconference of finance ministers from the Group of Seven industrialized nations on Tuesday ended with no immediate steps to soothe fears over the bloc’s debt crisis.
Market sentiment had come under pressure after Spain’s Treasury Minister Cristobal Montoro said that financial markets were effectively closed to Spain because of the current high level of the country’s borrowing costs.
Investors were also jittery after Moody’s ratings agency downgraded the credit ratings of six German lenders and Austria’s three largest banks, saying they face risks if the euro zone crisis deepens.
Elsewhere, the kiwi was lower against the Australian dollar with AUD/NZD adding 0.22%, to hit 1.2909.
Later in the day, the U.S. was to release revised data on nonfarm productivity, followed by government data on crude oil stockpiles, while the Federal Reserve was to release its Beige Book.