Investing.com - The New Zealand dollar rose to a three-month high against its U.S. counterpart on Wednesday, as investors eyed a statement by the Federal Reserve later in the day and amid sustained expectations for fresh easing measures by the European Central Bank on Thursday.
NZD/USD hit 0.8127 during late Asian trade, the pair’s highest since May 2; the pair subsequently consolidated at 0.8116, rising 0.35%.
The pair was likely to find support at 0.8022, the low of July 4 and resistance at 0.8234, the high of April 30.
The kiwi’s gains were limited as markets remained jittery ahead of the upcoming Fed announcement, amid speculation over whether the U.S. central bank will indicate if further quantitative easing measures are imminent.
Meanwhile, investors also remained concerned that the ECB may disappoint market expectations for bold steps to counter the euro zone debt crisis at its policy meeting on Thursday.
Expectations have been mounting that the ECB will announce measures to lower Spanish and Italian borrowing costs after central bank chief Mario Draghi pledged last week to do whatever is necessary to preserve the euro.
Market sentiment was also hit by data showing that Chinese manufacturing activity slumped to an eight-month low in July, sparking renewed fears over a slowdown in the world’s second largest economy.
China is New Zealand’s second biggest export partner.
The kiwi was also higher against the Australian dollar with AUD/NZD shedding 0.35%, to hit 1.2942.
Also Wednesday, official data showed that house price inflation in Australia rose unexpectedly in the second quarter, ticking up 0.5% after a 0.1% fall the previous quarter.
Analysts had expected house price inflation to fall 0.5% in the second quarter.
Later in the day, the U.S. was to produce data on non-farm employment change, while the Institute for Supply Management was to produce a report on manufacturing activity.
NZD/USD hit 0.8127 during late Asian trade, the pair’s highest since May 2; the pair subsequently consolidated at 0.8116, rising 0.35%.
The pair was likely to find support at 0.8022, the low of July 4 and resistance at 0.8234, the high of April 30.
The kiwi’s gains were limited as markets remained jittery ahead of the upcoming Fed announcement, amid speculation over whether the U.S. central bank will indicate if further quantitative easing measures are imminent.
Meanwhile, investors also remained concerned that the ECB may disappoint market expectations for bold steps to counter the euro zone debt crisis at its policy meeting on Thursday.
Expectations have been mounting that the ECB will announce measures to lower Spanish and Italian borrowing costs after central bank chief Mario Draghi pledged last week to do whatever is necessary to preserve the euro.
Market sentiment was also hit by data showing that Chinese manufacturing activity slumped to an eight-month low in July, sparking renewed fears over a slowdown in the world’s second largest economy.
China is New Zealand’s second biggest export partner.
The kiwi was also higher against the Australian dollar with AUD/NZD shedding 0.35%, to hit 1.2942.
Also Wednesday, official data showed that house price inflation in Australia rose unexpectedly in the second quarter, ticking up 0.5% after a 0.1% fall the previous quarter.
Analysts had expected house price inflation to fall 0.5% in the second quarter.
Later in the day, the U.S. was to produce data on non-farm employment change, while the Institute for Supply Management was to produce a report on manufacturing activity.