News Column

NZ Dollar Rises Ahead Of RBNZ Rate Decision

June 10, 2014

CANBERA (Alliance News) - The NZ dollar rose against the other major currencies in the early Asian session on Wednesday, as traders await the Reserve Bank of New Zealand's interest rate decision due tomorrow.

The RBNZ is expected to increase the official cash rate in the policy meeting to 3.25%, up from 3.00%. The rates were increased by 25 basis points each in March and April meetings.

In economic news, Retail credit card spending in New Zealand was up a seasonally adjusted 1.3% on month in May, Statistics New Zealand said.

That blew away forecasts for an increase of 0.5% following the 0.3% gain in April. Overall credit card spending climbed 1.7% on month after dipping 0.4% in the previous month.

The NZ dollar rose to nearly a 4-week high of 1.5823 against the euro, from an early low of 1.5891. The pair closed yesterday's deals at 1.5876. If the kiwi extends its gain, it is likely to find resistance around the 1.57 zone.

Against the yen, the NZ dollar advanced to more than a 3-week high of 87.48 , from an early low of 87.19. The next possible upside target for the kiwi is seen at 88.02.

The NZ dollar climbed to 5-day highs of 0.8546 against the US dollar and 1.0960 against the Australian dollar, from early lows of 0.8521 and 1.0994, respectively. If the kiwi continue its uptrend, it may possibly find the resistance around 0.86 against the greenback and 1.08 against the aussie.

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Source: Alliance News

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