Forexpros — The New Zealand dollar was trading at a one-month high against its U.S. counterpart on Wednesday, boosted by growing expectations that the Federal Reserve will implement fresh stimulus measures to shore up U.S. growth.
NZD/USD hit 0.8557 during late Asian trade, the pair’s highest since August 4; the pair subsequently consolidated at 0.8548, gaining 0.22%.
The pair was likely to find support at 0.8457, Tuesday’s low and resistance at 0.8667, the high of August 4.
The minutes from the Fed’s August policy meeting, released Tuesday, showed that some policymakers pressed for additional measures to bolster growth, beyond the pledge to hold interest rates at ultra-low levels for the next two years.
This added to speculation that the Fed may act after its extended two-day meeting in September.
In New Zealand, a report showed that although business confidence weakened in August, the outlook for the year ahead remained upbeat.
The National Bank of New Zealand’s business outlook survey showed that a net 34.4% of respondents expected conditions to improve over the next 12 months, compared with a net 47.6% that had expected an improvement in the previous survey in July.
The kiwi was also higher against its Australian cousin, with AUD/NZD shedding 0.20% to hit 1.2493.
Later in the day, payroll processing firm ADP was to release a report on U.S. non-farm payrolls. The U.S. was also to publish data on manufacturing activity in the Chicago area and factory orders.
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