Forexpros – The New Zealand dollar rose to a four-day high against its U.S. counterpart on Thursday, as risk appetite recovered ahead of the outcome of a critical policy-setting meeting by the European Central Bank later in the day.
NZD/USD hit 0.7690 during late Asian trade, the pair’s highest since September 30; the pair subsequently consolidated at 0.7722, climbing 0.74%.
The pair was likely to find support at 0.7552, the low of October 5 and resistance at 0.7826, the high of September 26.
Consistently high inflation in the euro zone led investors to expect the ECB to leave rates unchanged at 1.5%, despite calls for a rate cut to shore up the region’s economy.
Investor confidence was supported after European leaders acknowledged that further initiatives were necessary to support the struggling banking sector in the single currency bloc.
Demand for riskier assets was also boosted after a report on Wednesday showed that U.S. private sector employment rose more-than-expected last month.
Elsewhere, the kiwi was lower against the Australian dollar with AUD/NZD rising 0.88%, to trade at 0.9745.
Later in the day, the U.S. Department of Labor was to release weekly data on unemployment claims.
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