News Column

NZ Dollar Advances Ahead Of Fed Announcement

June 17, 2014

CANBERA (Alliance News) - The New Zealand dollar climbed against the other major currencies in Asian deals on Wednesday, as traders await the outcome of the US Federal Reserve's monetary policy meeting due later in the day.

The Fed is expected to taper its asset purchase program by USD10 billion to USD35 billion and affirm its stance to hold rates at record lows for a considerable period.

The Federal Reserve Chairwoman Janet Yellen will hold press conference at 2:30 pm ET, after the announcement.

New Zealand saw a seasonally adjusted current account deficit of NZD0.6 billion in the first quarter of 2014, Statistics New Zealand said today.

That's up from the downwardly revised NZD0.9 billion deficit in the three months prior.

The New Zealand dollar climbed to 1.0772 against the aussie, its strongest level since May 23. The next possible upside target for the kiwi is seen around the 1.065 level. At yesterday's close, the pair was quoted at 1.0774.

The kiwi edged up to 0.8668 against the greenback and moved sideways in a short while. If the kiwi extends advance, it is likely to face resistance around the 0.875 mark.

The kiwi that ended Tuesday's trading at 1.5635 against the euro rose to a 2-day high of 1.5626. The next possible resistance for the kiwi is seen around the 1.55 region.

The kiwi strengthened to a 5-day high of 88.54 against the yen, compared to yesterday's closing value of 88.38. The kiwi is likely to find resistance around the 89.00 level.

Looking ahead, Eurozone construction output for April is due in the European session.

The Federal Reserve will announce monetary policy decision at 2:00 pm ET. The interest rates are expected to keep unchanged at 0.25%.

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Source: Alliance News

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