Forex Pros – The New Zealand dollar rebounded from a 2-month low against its U.S. counterpart on Wednesday, amid speculation markets overpriced the probability of an interest rate cut by the nation’s central bank, following Tuesday’s 6.3 magnitude earthquake.Â
NZD/USD hit 0.7461 during European morning trade, shedding 0.04% after clawing back up from 0.7432, the pair’s lowest since December 23, 2010.
The pair was likely to find support at 0.7395, the low of December 23 and resistance at 0.7640, Tuesday’s high.
Earlier in the day, Moody’s Investors Service said it saw no immediate impact from the Christchurch earthquake on the nation’s Aaa credit rating.
Meanwhile, Prime Minister John Key said at least 75 people were killed, with the disaster likely to cost insurers approximately NZD5 billion.
On Tuesday, a magnitude 6.3 earthquake rocked the country’s second largest city, Christchurch, toppling buildings and closing down the airport.
The earthquake, which followed a quake in September that was the worst in 80 years, initially prompted speculation the country’s central bank may soon lower interest rates.
The kiwi was also down against the euro, with EUR/NZD up 0.49% to hit 1.8375.
Later in the day, the U.S. was to publish industry data on existing home sales.
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