NZ Dollar Climbs On U.S. Stimulus Hopes
The NZ dollar appreciated against its major counterparts in the
Asian session on Wednesday, as optimism about a U.S. stimulus
package and progress in the Covid vaccine rollout lifted risk
House Speaker Nancy Pelosi held discussions with Senate Majority
Leader Mitch McConnell, Senate Minority Leader Chuck Schumer and
House Minority Leader Kevin McCarthy on Tuesday to break the
impasse on the coronavirus relief package.
After the meeting, McConnell struck an upbeat tone, saying that
significant progress has been made on talks over the aid
Congressional leaders are planning to reach a deal before the
end of the year.
Investors await the outcome of a two-day Federal Reserve policy
meeting ending later in the day. The Fed is expected to keep the
key overnight interest rate near zero and the QE program at $120
billion a month.
Policy decisions from the Bank of England, the Swiss National
Bank and the Bank of Japan are also due this week.
The kiwi edged up to 1.0628 against the aussie from Tuesday's
closing value of 1.0660. The kiwi is seen finding resistance around
the 1.03 level.
Data from Westpac showed that Australia's leading index
registered its strongest growth in the survey history in Nove,ber
signaling above trend growth.
The six-month annualized growth rate in the Westpac Melbourne
Institute leading index, which indicates the likely pace of
economic activity relative to trend three to nine months into the
future, rose to 4.38 percent in November from 3.77 percent in
The kiwi spiked up to a 2-day high of 1.7104 against the euro,
compared to yesterday's closing quote of 1.7138. Next key
resistance for the kiwi is seen around the 1.68 region.
The NZ currency reached as high as 0.7114 against the greenback,
setting a 2-day high. The pair had closed yesterday's trading
session at 0.7086. The kiwi is likely to face resistance around the
The kiwi gained to 73.63 against the yen, compared to Tuesday's
New York session close of 73.46. If the kiwi gains further, it may
face resistance around the 76.00 level.
Data from the Ministry of Finance showed that Japan posted a
merchandise trade surplus of 366.8 billion yen in November.
That was well shy of expectations for a surplus of 529.8 billion
yen and down sharply from 872.9 billion yen in October.
Looking ahead, U.K. consumer and producer prices for November
are scheduled for release at 2:00 am ET.
PMI reports from major European economies and Eurozone trade
data for October are due in the European session.
Canada CPI and U.S. retail sales for November, as well as
business inventories data for October and NAHB housing market index
for December will be released in the New York session.
At 2:00 pm ET, the Fed announces its decision on interest rate.
Economists widely expect the federal funds rate to be kept at 0 -