The New Zealand dollar rose to fresh two-month highs against its U.S. counterpart on Tuesday, after strong business confidence data from New Zealand, while Friday''s downbeat U.S. employment data continued to weigh on the greenback.
NZD/USD hit 0.8389 during late Asian trade, the session high; the pair subsequently consolidated at 0.8388, adding 0.13%.
The pair was likely to find support at 0.8284, Monday''s low and resistance at 0.8446, the high of October 24.
In a report, the New Zealand Institute of Economic Research said its business confidence rose to a 20-year high of 52 in the fourth quarter, from a reading of 38 in the three months to September.
Meanwhile, Friday’s data showing that the U.S. economy added far fewer jobs than expected in December cast doubts over the strength of the recovery in the labor market, and fuelled expectations that the Federal Reserve will maintain loose monetary policy for longer.
The kiwi was higher against the Australian dollar, with AUD/NZD sliding 0.42% to 1.0762.
Later in the day, the U.S. was to produce data on retail sales, as well as reports on import prices and business inventories.
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