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Forex - NZD/USD soars to 1-year high amid U.S. stimulus concerns

Published 10/06/2010, 11:19 AM
NZD/USD
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EUR/NZD
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Investing.com – New Zealand’s dollar soared to a 1-year high against its U.S. counterpart on Wednesday, amid fears that further monetary easing may be required to support the faltering U.S. economy.

NZD/USD hit 0.7535 during European afternoon trade, the pair’s highest since October 26, 2009; the pair subsequently consolidated at 0.7522, gaining 0.43%.

The pair was likely to find support at 0.7356, Tuesday’s low and resistance at 0.7595, the high of October 23 2009.

Earlier in the day, U.S. payroll processing firm ADP said non-farm private employment declined by a seasonally adjusted 39K in September, after rising by a revised 10K in August.

Analysts had expected non-farm private sector employment to increase by 18K in September.

The report said that the decline in private employment in September “confirms a pause in the economic recovery already evident in other data”.

The kiwi was also up against the euro, with EUR/NZD shedding 0.06% to hit 1.8460.

Earlier in the week, Federal Reserve Chairman Ben Bernanke said that the central bank’s first round of large-scale asset purchases that ended in March improved the economy and that further buying is likely to help more.

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