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Forex - NZD/USD rises with RBNZ rate statement on tap

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Investing.com -

Investing.com - The New Zealand dollar rose against its U.S. counterpart on Wednesday, as speculation surrounding possible stimulus measures in China boosted risk appetite and as markets eyed the Reserve Bank of New Zealand's rate statement due the next day.

NZD/USD hit 0.6402 during late Asian trade, the pair's highest since September 4; the pair subsequently consolidated at 0.6381, climbing 0.58%.

The pair was likely to find support at 0.6251, Tuesday's low and resistance at 0.6481, the high of August 31.

Market sentiment strengthened after a slowdown in Chinese exports and imports indicated that a recovery in the broader economy remains fragile and may need further government stimulus.

Data on Tuesday showed that Chinese exports slumped 5.5% from a year earlier, although better than forecasts for a decline of 6.0%, while imports plunged 13.8%, far worse than expectations for a drop of 8.2%.

On Thursday, the RBNZ was expected to lower its benchmark interest rate by 0.25%, from 3.00% to 2.75%. The central bank was to hold a press conference after the rate announcement.

The kiwi was steady against the Australian dollar, with AUD/NZD at 1.1060.

Earlier Wednesday, the Westpac Banking Corporation reported that its consumer sentiment index for Australia fell to minus 5.6 in September from a reading of 7.8 the previous month.

A separate report showed that Australia's home loans rose 0.3% in July, confounding expectations for a 0.8% gain. Home loans increased by 4.8% in June, whose figure was revised from a previously estimated 4.4% rise.

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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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