Forex - NZD/USD hits 2-day high after inflation expectations data
Investing.com
Published May 24, 2011 03:02AM ET
NZD/USD hit 0.7970 during late Asian trade, the pair’s highest since Friday; the pair subsequently consolidated at 0.7964, surging 0.79%.
The pair was likely to find support at 0.7857, Monday’s low and resistance at 0.8064, the high of May 3.
The Reserve Bank of New Zealand said two-year ahead inflation expectations rose to 3%, the highest rate since the third quarter of 2008. During the previous survey, inflation expectations were at 2.6%. Expectations one-year ahead climbed to 3.1% from 2.9%.
The New Zealand dollar was also boosted as a rally in commodities and stocks bolstered demand for higher- yielding assets.
Elsewhere, the kiwi was higher against its Australian cousin, with AUD/NZD shedding 0.30% to hit 1.3248.
On Monday, St. Louis Federal Reserve President James Bullard said the Fed would hold interest rates at record low levels after the second round of quantitative easing ended in June to provide more time to evaluate the strength of the U.S. economy.
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Written By: Investing.com
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