Forexpros – The New Zealand dollar edged higher against its U.S. counterpart on Tuesday, tracking gains in the euro amid expectations for progress in tackling Europe’s debt crisis.
NZD/USD hit 0.7601 during late Asian trade, the pair’s highest since November 18; the pair subsequently consolidated at 0.7584, gaining 0.44%.
The pair was likely to find support at 0.7478, Monday’s low and resistance at 0.7648, the high of November 18.
Market sentiment strengthened ahead of a meeting of European Union finance ministers later in the day. The ministers were expected to approve plans to enlarge the scope of the region’s bailout fund, the European Financial Stability Facility and to sign off on Greece’s next tranche of financial aid.
Elsewhere, ratings agency Fitch downgraded its credit outlook for the U.S. to negative, saying there was “considerable uncertainty surrounding the economy’s potential output.”
Meanwhile, the kiwi was lower against its Australian cousin, with AUD/NZD rising 0.24% to hit 1.3143.
Later in the day, New Zealand was to publish government data on building consents, while the U.S. was to release industry data on house price inflation as well as a report on consumer confidence.
Forexpros
