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Forex – NZD/USD surges to fresh monthly high on rising sentiment

Published 06/17/2010, 08:06 AM
AUD/NZD
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Investing.com – The New Zealand dollar rose to a fresh monthly high against its U.S. counterpart on Thursday, amid rising market sentiment as European leaders met in Brussels to discuss solutions to the euro zone debt crisis.

The pair hit 0.7019 during European morning trade, a fresh monthly high; the pair subsequently consolidated at around 0.7016, gaining 0.53%.

The pair was likely to find support at 0.6801, last Friday’s low and short-term resistance at 0.7073, the high of May 17.

EU leaders were meeting in Brussels to discuss measures to strengthen budget discipline and improve economic policy coordination. Also on the agenda was a proposed bank levy to ensure that any future bail-out is financed by banks rather than taxpayers.

Later Thursday, Spain was due to hold an auction of up to EUR 3.5 billion of 10- and 30-year bonds with investors keen to gauge market appetite for the sale.

The kiwi was also up against the Aussie, with AUD/NZD shedding 0.25% to hit 1.2353.

Later in the day, the U.S. was to publish key CPI data as well as a report on initial jobless claims. A closely watched report on manufacturing activity in Philadelphia was also due to be released.



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