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Forex - NZD/USD hits 5-day high after budget projects return to surplus

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Forex Pros - The New Zealand dollar rose to a five-day high against its U.S. counterpart on Thursday, after the country's government said it would return its budget to surplus in four years by cutting spending.

NZD/USD hit 0.7938 during late Asian trade, the pair's highest since May 13; the pair subsequently consolidated at 0.7921, gaining 0.37%.

The pair was likely to find support at 0.7824, Wednesday's low and resistance at 0.7989, the high of May 12.

Releasing the annual budget earlier, New Zealand's Finance Minister Bill English said the operating surplus will be NZD1.3 billion in the year through June 2015 from a record NZD16.7 billion deficit in the current period ending June 30.

The government is cutting spending in order to redirect money to rebuild the south island city of Christchurch after earthquakes in September and February wrecked homes and killed more than 180 people.

Standard & Poor's, which has New Zealand's AA+ sovereign rating on negative outlook, said the nation's credit rating is secure as long as budget targets are met.

The kiwi was also up against its Australian cousin, with AUD/NZD slipping 0.18% to hit 1.3444.

Later in the day, the U.S. was to publish its weekly report on initial jobless claims as well as industry data on existing home sales and official data on manufacturing activity in Philadelphia.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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