Forex - NZD/USD erases losses, supported by Bollard remarks
Investing.com
Published Apr 12, 2011 03:22AM ET
NZD/USD rebounded from 0.7744, the pair’s lowest since April 7, to hit 0.7818 during late Asian trade, climbing 0.32%.
The pair was likely to find support at 0.7668, the low of April 6 and resistance at 0.7846, Monday’s high and a six-month high.
Earlier Tuesday, Japan's Nuclear and Industrial Safety Agency said that based on cumulative levels of radiation released, the severity of the incident at the Fukushima Daiichi power plant had been raised to seven, the worst on an internationally recognized scale.
The announcement came as the second major aftershock in a day hit the country.
But the kiwi remained supported after New Zealand’s Reserve Bank Governor Alan Bollard said that the economy will get a boost from higher farm export prices that will underpin the nation’s currency and may feed inflation expectations which the central bank would need to counter.
Meanwhile, the kiwi was lower against the yen, with NZD/JPY slipping 0.12% to hit 65.87.
Also Tuesday, the International Monetary Fund said that New Zealand’s gross domestic product will rise 0.9% this year, down from last month’s prediction of 1%, before strengthening in 2012 as reconstruction of the earthquake hit South Island city of Christchurch intensifies.
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Written By: Investing.com
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