Investing.com - USD/JPY is not the only dollar-related pair
hovering near a lofty, rarely seen level. The New Zealand dollar is
trading slightly lower against its U.S. rival during Wednesday's
Asian session, but is still above the 85 cents mark, a level rarely
seen for the kiwi against the greenback.
In Asian trading Wednesday, NZD/USD fell 0.01% to 0.8527. The pair
was likely to find support at 0.8434, the low of February 15 and
has topped resistance at 0.8520, the high of February 15. The kiwi
gained some steam on Tuesday following some decent economic data.
In a report, the New Zealand Institute of Economic Research said
its index of business confidence rose to 23 in the first quarter
from a reading of 20 in the previous quarter.
The kiwi also caught a bid after official data showed that the
annual rate of Chinese consumer inflation eased to 2.1% in March
from 3.2% in February and below forecasts for 2.4%.
Earlier this week, Reserve Bank deputy governor Grant Spencer said
if home prices and credit expansion start to have the appearance of
fueling a possible consumption bubble and inflationary pressures
become evident, a response from the central bank could be in the
Low interest rates have helped New Zealand property values soar 8%
in the past year. New Zealand's benchmark interest rate is 2.5%,
low by the country's standards, but still one of the highest in the
developed world. RBNZ has previously indicated it will leave rates
on hold this year with in the anticipation of some adjustment in
the first quarter of 2014 when most traders are expecting a rate
Well NZD/USD previously traversed 85 just two months, today's go
round with that level is just the third time in three decades the
kiwi has traded that high.
Elsewhere, AUD/NZD is down 0.07% at 1.2297 while NZD/JPY is
hovering near five-year highs up 0.02% at 84.44.
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