Investing.com - The New Zealand dollar rose to a one-week high against its U.S. counterpart on Thursday, as better-than-expected U.S. economic reports boosted market sentiment although investors remained cautious ahead of a highly anticipated European Union summit.
NZD/USD hit 0.7963, the pair’s highest since June 21; the pair subsequently consolidated at 0.7953, climbing 0.45%.
The pair was likely to find support at 0.7886, the low of June 18 and resistance at 0.8016, the low of June 21.
The risk-related kiwi found support after industry data showed on Thursday that U.S. pending home sales jumped 5.9% in May, blowing past expectations for a 1% increase, to match a two-year high hit in March.
A separate report showed that U.S. durable goods orders rose 1.1% in May, beating expectations for a 0.4% increase, indicating that the manufacturing sector is stabilizing following a 0.2% drop in May.
Investors remained cautious however, as European leaders appeared to be deeply divided on how to tackle the region’s debt crisis ahead of a summit in Brussels due to take place on Thursday and Friday.
Earlier in the week, German Chancellor Angela Merkel shut the door to joint euro-bonds, saying that they are the “wrong way” to achieve greater European integration.
Elsewhere, the National Bank of New Zealand said earlier that its index of business confidence declined to 12.6 in June from a reading of 27.1 the previous month.
The kiwi was also higher against the New Zealand dollar with AUD/NZD falling 0.12%, to hit 1.2717.
Also Thursday, industry data showed that new home sales in Australia rose 0.7% in May, after a 6.9% jump the previous month.
Later in the day, the U.S. was to release government data on initial jobless claims, followed by revised data on first quarter economic growth.
NZD/USD hit 0.7963, the pair’s highest since June 21; the pair subsequently consolidated at 0.7953, climbing 0.45%.
The pair was likely to find support at 0.7886, the low of June 18 and resistance at 0.8016, the low of June 21.
The risk-related kiwi found support after industry data showed on Thursday that U.S. pending home sales jumped 5.9% in May, blowing past expectations for a 1% increase, to match a two-year high hit in March.
A separate report showed that U.S. durable goods orders rose 1.1% in May, beating expectations for a 0.4% increase, indicating that the manufacturing sector is stabilizing following a 0.2% drop in May.
Investors remained cautious however, as European leaders appeared to be deeply divided on how to tackle the region’s debt crisis ahead of a summit in Brussels due to take place on Thursday and Friday.
Earlier in the week, German Chancellor Angela Merkel shut the door to joint euro-bonds, saying that they are the “wrong way” to achieve greater European integration.
Elsewhere, the National Bank of New Zealand said earlier that its index of business confidence declined to 12.6 in June from a reading of 27.1 the previous month.
The kiwi was also higher against the New Zealand dollar with AUD/NZD falling 0.12%, to hit 1.2717.
Also Thursday, industry data showed that new home sales in Australia rose 0.7% in May, after a 6.9% jump the previous month.
Later in the day, the U.S. was to release government data on initial jobless claims, followed by revised data on first quarter economic growth.