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Forex - NZD/USD rises to 3-week high, but gains limited

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Investing.com - The New Zealand dollar rose to a three-week against its U.S. counterpart on Wednesday, but gains were limited as investors remained cautious ahead of the European Central Bank's upcoming policy meeting.

NZD/USD hit 0.8398 during late Asian trade, the pair's highest since December 19; the pair subsequently consolidated at 0.8383, rising 0.20%.

The pair was likely to find support at 0.8336, Tuesday's low and resistance at 0.8406, the high of December 19.

The ECB was widely expected to hold off cutting rates at its policy-setting meeting on Thursday, but some market participants expected the bank to flag the possibility of rate cuts later in the year.

Investors also remained cautious amid concerns about continuing political wrangling in Washington over further budget cuts and raising the U.S. debt ceiling.

Elsewhere, the kiwi was higher against the Australian dollar with AUD/NZD slipping 0.15%, to hit 1.2535.

Also Wednesday, official data showed that retail sales in Australia ticked down 0.1% in November, disappointing expectations for a 0.3% rise, after a flat reading the previous month.

A separate report showed that Australia's new home sales rose 4.7% in November after a 3.4% increase the previous month.

Later in the day, the U.S. was to produce data on crude oil stockpiles.

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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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