Forex - NZD/USD hits daily high as risk aversion eases

Forex Pros – The New Zealand dollar rose to a daily high against its U.S. counterpart on Tuesday, as concerns over possible euro zone sovereign debt restructuring eased, boosting demand for higher yielding assets.

NZD/USD hit 0.7830 during late Asian trade, the daily high; the pair subsequently consolidated at 0.7817, gaining 0.28%.

The pair was likely to find support at 0.7754, Monday’s low and a five-week low and resistance at 0.7964, last Friday’s high.

On Monday, European Union Finance ministers endorsed a EUR78 billion bailout for Portugal and stepped up pressure on Greece to do more to win improved aid terms.

Elsewhere, the Reserve Bank of Australia said earlier that higher interest rates may be required to contain the jump in consumer prices.

“If economic conditions continued to evolve as expected, higher interest rates were likely to be required at some point if inflation was to remain consistent with the medium-term target,” the minutes of the central bank's May 3 meeting said.

Meanwhile, the kiwi was down against its Australian cousin, with AUD/NZD easing up 0.17% to hit 1.3558.

Later Tuesday, the U.S. was to publish official data on building permits and housing starts. The country was also to publish government data on the capacity utilization rate and industrial production.