Investing.com – The New Zealand dollar eased off a three-year high against its U.S. counterpart on Thursday, after the Reserve Bank of New Zealand kept its benchmark interest rate at a record low and called the local currency’s rise “unwelcome”.
NZD/USD hit 0.8006 during late Asian trade, the daily low; the pair subsequently consolidated at 0.8044, shedding 0.42%.
The pair was likely to find support at 0.7975, Tuesday’s low and resistance at 0.8105, Wednesday’s high and a three-year high.
Speaking after the central bank left the official cash rate unchanged at 2.5%, RBNZ Governor Alan Bollard said the outlook for the economy remained uncertain.
“Given the outlook for core inflation and continued economic disruption from the earthquakes, the current level of the cash rate is likely to remain appropriate for some time,” he said.
“Higher oil prices and the elevated level of the New Zealand dollar are both unwelcome,” Bollard said. “They will have some dampening effect on economic activity.”
The kiwi was also down against its Australian cousin, with AUD/NZD surging 0.87% to hit 1.3567.
On Wednesday, the U.S. Federal Reserve said it "will complete" it’s USD600 billion bond-buying program by the end of June and will hold short-term rates at a record low for an "extended period."
NZD/USD hit 0.8006 during late Asian trade, the daily low; the pair subsequently consolidated at 0.8044, shedding 0.42%.
The pair was likely to find support at 0.7975, Tuesday’s low and resistance at 0.8105, Wednesday’s high and a three-year high.
Speaking after the central bank left the official cash rate unchanged at 2.5%, RBNZ Governor Alan Bollard said the outlook for the economy remained uncertain.
“Given the outlook for core inflation and continued economic disruption from the earthquakes, the current level of the cash rate is likely to remain appropriate for some time,” he said.
“Higher oil prices and the elevated level of the New Zealand dollar are both unwelcome,” Bollard said. “They will have some dampening effect on economic activity.”
The kiwi was also down against its Australian cousin, with AUD/NZD surging 0.87% to hit 1.3567.
On Wednesday, the U.S. Federal Reserve said it "will complete" it’s USD600 billion bond-buying program by the end of June and will hold short-term rates at a record low for an "extended period."