Investing.com - The New Zealand dollar was steady against its
U.S. counterpart on Wednesday, supported by comments by the Reserve
Bank of New Zealand, although speculation the Federal Reserve could
soon begin tapering stimulus measures continued to support the
NZD/USD hit 0.8239 during late Asian trade, the session high; the
pair subsequently consolidated at 0.8224, inching up 0.03%.
The pair was likely to find support at 0.8134, the low of September
15 and resistance at 0.8310, the high of October 31.
RBNZ Governor Graeme Wheeler earlier said interest rates will start
being raised next year, due to the rise in inflation, which is
likely to drive the kiwi higher.
"The concern will be that the interest differential between New
Zealand and any of the advanced economies will widen," Wheeler
The comments came after, in its biannual financial stability
report, the central bank highlighted the overvalued housing market
as the main threat to the country's financial system.
Meanwhile, the greenback remained supported after last week's
stronger than forecast U.S. nonfarm payrolls report prompted
investors to bring forward expectations for a reduction in the
Fed's USD85 billion-a-month asset purchase program.
The kiwi was little changed against the euro with EUR/NZD dipping
0.02%, to hit 1.6338.
Later in the day, New Zealand was to publish data on retail sales.
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