Forexpros – The New Zealand dollar was higher against its U.S. counterpart on Tuesday, after a highly anticipated teleconference of European finance ministers but gains were limited as concerns over the debt crisis persisted.
NZD/USD hit 0.7608 during late Asian trade, the daily high; the pair subsequently consolidated at 0.7600, adding 0.58%.
The pair was likely to find support at 0.7486, the low of December 14 and resistance at 0.7683, the high of November 17.
European Union finance ministers agreed to boost International Monetary Fund resources by EUR150 billion with the support of EU allies, in order to tackle the region’s debt crisis.
But investors remained cautious after European Central Bank President Mario Draghi said on Monday that the ECB’s purchases of peripheral debt were temporary and “not infinite”, disappointing hopes for further bond buying.
He also said 2012 will be a difficult year for the euro zone’s banks, and recovery in economic activity in the region is likely to be slow.
Markets were also eyeing a Spanish auction of three- and six-month government bonds later in the day.
Elsewhere, the kiwi was fractionally higher against the Australian dollar with AUD/NZD edging down 0.02%, to hit 1.3096.
Earlier Tuesday, the minutes of the Reserve Bank of Australia’s latest meeting showed policy makers saw continued expansion in the domestic economy.
Later in the day, the U.S. was to publish data on building permits and housing starts.
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