Forexpros – The New Zealand dollar was higher against its U.S. counterpart on Wednesday, as risk sentiment was supported by hopes that Greece will receive its next bailout package and an increase in New Zealand property sales.
NZD/USD hit 0.7844 during late Asian trade, the daily high; the pair subsequently consolidated at 0.7828, rising 0.39%.
The pair was likely to find support at 0.7676, the low of October 10 and resistance at 0.7956, the high of September 27.
Market sentiment strengthened after officials from the European Union, International Monetary Fund and European Central Bank said Greece was likely to receive its next tranche of financial aid next month and said Athens has made “important progress” in fiscal consolidation.
Earlier in the day, the Real Estate Institute of New Zealand said house prices rose 1.7% in September, from a 0.5% increase the previous month.
“We’re seeing a very interesting market with listings improving though still reported as tight, plenty of buyer interest but only on a very rational basis,” said REINZ Chief Executive Helen O’Sullivan.
But the kiwi’s gains were limited after Slovakia’s parliament rejected the plan to expand the power of the euro zone’s bailout fund, on Tuesday evening. The government said it still hoped to pass the measure by the end of the week.
Elsewhere, the New Zealand dollar was higher against its Australian counterpart with AUD/NZD shedding 0.27%, to trade at 1.2726.
Later in the day, European Commission President Jose Barroso was to present proposals on bank recapitalization to the European Parliament. The U.S. was to publish the minutes of the Federal Reserve’s most recent policy-setting meeting.
Forexpros
