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NZ Dollar Advances As Upbeat US Data Lifts Sentiment

August 22, 2014

CANBERA (Alliance News) - The New Zealand dollar gained ground against the other major currencies in late Asian deals on Friday, as investor sentiment improved after a slew of upbeat economic reports released from the US overnight highlighted a strengthening economy.

While the US jobless claims fell more-than-expected in the week ended August 16, existing home sales rose to the most since September in July. Further, leading index topped forecasts in July and the Markit's preliminary US manufacturing purchasing managers' index increased this month to a four-year high of 58.0.

Traders focus on Fed's annual monetary policy meeting in Jackson Hole, Wyoming, where the Fed Chair Janet Yellen will give speech about the health of the labor market. Yellen's comments will be closely watched, after the minutes of Fed's July policy meeting revealed an active debate among members over whether increases in rates may be needed earlier than anticipated, given the progress of improvements in the job market and housing market after a slow start to the year.

The kiwi rose to 3-day highs of 0.8424 against the greenback and 1.5770 against the euro, up from early lows of 0.8387 and 1.5825, respectively. The kiwi may possibly find resistance around 0.85 against the greenback and 1.57 against the euro.

Recovering from an early low of 87.15 against the yen, the kiwi strengthened to a new 2-week high of 87.37. Further gains may push the kiwi to a resistance around the 88.00 region.

The kiwi rose back to 1.1065 against the aussie, reversing from an early low of 1.1092. If the kiwi continues its advance, 1.10 is seen as its next possible resistance level.

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Source: Alliance News

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