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Forex - NZD/USD pulls back from 3-day high after Bollard remarks

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Forex Pros - The New Zealand dollar eased off a three-day high against its U.S. counterpart on Wednesday, after Reserve Bank of New Zealand Governor Alan Bollard said the said the currency was "undesirably high".

NZD/USD retreated from 0.7969, the pair's highest since last Friday, to hit 0.7940 during late Asian trade, slipping 0.13%.

The pair was likely to find support at 0.7833, last Friday's low and resistance at 0.7994, the high of May 4.

Earlier in the day, while releasing the central bank's financial stability report, Dr. Bollard said the New Zealand dollar had been pushed to undesirably high levels because of rising commodity prices but it was low against the Australian dollar.

''We think that it would be better for the New Zealand economy if the NZ dollar was not so high,'' he said.

The New Zealand dollar has climbed 4.6% against the greenback over the past three months.

Meanwhile, the kiwi was down against its Australian cousin, with AUD/NZD climbing 0.33% to hit 1.3668.

Later in the day, the U.S. was to publish official data on its trade balance while New Zealand was to publish reports on food price inflation and manufacturing activity.

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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.


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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