Investing.com

Investing.com - The New Zealand dollar edged higher against its U.S. counterpart on Wednesday, as market sentiment remained supported after concerns over geopolitical tensions between Ukraine and Russia began to subside on Tuesday.



NZD/USD hit 0.8410 during late Asian trade, the pair''s highest since February 28; the pair subsequently consolidated at 0.8399, adding 0.11%.



The pair was likely to find support at 0.8344, the low of March 3 and resistance at 0.8432, the high of January 14.



Market sentiment recovered on Tuesday, as the threat of war between Russia and Ukraine eased after Russian President Vladimir Putin said a military deployment in Ukraine is not needed now. Russia’s defense minister also ordered troops engaged in military exercises close to Ukraine’s borders to return to their bases.



But investors still remained cautious with Russian forces still maintaining a military presence in Ukraine’s Crimea region.



The kiwi was fractionally lower against the Australian dollar, with AUD/NZD edging up 0.08% to 1.0678.



Also Wednesday, official data showed that Australia''s gross domestic product rose 0.8% in the fourth quarter, exceeding expectations for a 0.7% increase, after a 0.6% expansion in the three months to September.



Later in the day, the U.S. was to release the ADP report on private sector job creation, while the Institute for Supply Management was to publish a report service sector activity.





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