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Forex - NZD/USD steady after RBNZ comments

Published 11/13/2013, 02:50 AM
Updated 11/13/2013, 02:50 AM

Investing.com - The New Zealand dollar was steady against its U.S. counterpart on Wednesday, supported by comments by the Reserve Bank of New Zealand, although speculation the Federal Reserve could soon begin tapering stimulus measures continued to support the greenback.

NZD/USD hit 0.8239 during late Asian trade, the session high; the pair subsequently consolidated at 0.8224, inching up 0.03%.

The pair was likely to find support at 0.8134, the low of September 15 and resistance at 0.8310, the high of October 31.

RBNZ Governor Graeme Wheeler earlier said interest rates will start being raised next year, due to the rise in inflation, which is likely to drive the kiwi higher.

"The concern will be that the interest differential between New Zealand and any of the advanced economies will widen," Wheeler added.

The comments came after, in its biannual financial stability report, the central bank highlighted the overvalued housing market as the main threat to the country's financial system.

Meanwhile, the greenback remained supported after last week’s stronger than forecast U.S. nonfarm payrolls report prompted investors to bring forward expectations for a reduction in the Fed’s USD85 billion-a-month asset purchase program.

The kiwi was little changed against the euro with EUR/NZD dipping 0.02%, to hit 1.6338.

Later in the day, New Zealand was to publish data on retail sales.


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