Topic: COZfx: NZD/USD edges higher ahead of RBNZ statement
COZforex: The New Zealand dollar edged higher against its US counterpart on Wednesday, as markets eyed the Reserve Bank of New Zealand's monthly policy statement due later in the day and investors continued to monitor developments in Ukraine and the Gaza Strip.
NZD/USD hit 0.8684 amid late Asian trade, the session high; the pair subsequently consolidated at 0.8688, rising 0.25%. COZforex senior currency strategist Ian • Quigley said, NZD/USD was likely to find support at 0.8650, the low of July 17 and resistance at 0.8720, the high of July 21.
The RBNZ was expected to raise its benchmark interest rate by 0.25% at its monthly policy-setting meeting scheduled later Wednesday. Last month, the central bank raised its rates from 3.00% to 3.25% in a widely expected decision and suggested that borrowing costs could rise again this year.
Markets were still jittery after the European Union threatened Russia on Tuesday with harsher sanctions over Ukraine, while fighting in the Gaza Strip continued.
Also Wednesday, official data showed that consumer price inflation in Australia rise 0.5% in the second quarter, after an increase of 0.6% in the three months to April. Analysts had expected CPI to rise 0.6% in the last quarter.
On a yearly basis, Australia CPI rise to 3.0% in the last quarter, from 2.9%, compared to expectations for an increase to 3.1%.
(COZ forex UK)