Forex Pros – The New Zealand dollar eased up to a fresh five-month high against its U.S. counterpart on Monday, after a report showing that the nation’s business confidence rebounded strongly in April.
NZD/USD hit 0.7846 during late Asian trade, the pair’s highest since November 11; the pair subsequently consolidated at 0.7845, rising 0.23%.
The pair was likely to find support at 0.7761, Friday’s low and resistance at 0.7911, the high of November 9.
Earlier in the day, a report compiled by Business New Zealand showed that confidence among New Zealand businesses rebounded strongly in April on the back of a better assessment of the economy.
A net 14% of respondents expected the economy to be better in a year’s time compared with a net 21% expecting deterioration last month. The March outcome clearly reflected the impact of the February 22 Christchurch earthquake, the report said.
“The latest result bespeaks of improving economic activity as the year goes by though it is clear that at the moment while some sectors are doing extremely well others are struggling,” BNZ said.
The kiwi was also higher against the yen, with NZD/JPY rising 0.31% to hit 66.55.
Later in the day, the Federal Reserve Bank of Chicago President Charles Evans was to speak. Also Monday, Federal Reserve Governor Janet Yellen was to speak.
ForexPros.com
