Forexpros – The New Zealand dollar was up against its U.S. counterpart on Monday, as risk appetite remained supported amid ongoing talks in the euro zone on a new plan to tackle the region’s debt crisis.
NZD/USD hit 0.8081 during late Asian trade, the pair’s highest since September 21; the pair subsequently consolidated at 0.8044, rising 0.16%.
The pair was likely to find support at 0.7898, the low of October 21 and resistance at 0.8192, the high of June 22.
European leaders appeared to be moving closer to a new plan to stem the region’s financial crisis, including measures to recapitalize banks and boost the firepower of the euro zone’s bailout fund, but divisions remained over restructuring Greek debt.
Market sentiment was also boosted after a preliminary report showed that the Chinese HSBC manufacturing activity index rose to 51.1 in October, a five-month high after a downwardly revised reading at 49.9 the previous month.
A reading above 50.0 indicates industry expansion and below indicates contraction.
Elsewhere, the kiwi was lower against the Australian dollar with AUD/NZD easing up 0.05%, to trade at 1.2922.
Earlier Monday, official data showed that Australia’s producer price inflation fell more-than-expected in the third quarter, adding to speculation that the country’s central bank could cut interest rates later this week.
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