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Forex - NZD/USD nears 3-year high on China investment hopes

Published 05/26/2011, 03:17 AM
Updated 05/26/2011, 03:17 AM

Investing.com – The New Zealand dollar was trading close to a three-year high against its U.S. counterpart on Thursday, boosted by reports that a major Chinese company planned to invest in the nation’s assets and after remarks by the country’s finance minister.

NZD/USD hit 0.8114 during late Asian trade, the pair’s highest since May 2; the pair subsequently consolidated at 0.8087, surging 1.23%.

The pair was likely to find support at 0.7900, Wednesday’s low and resistance at 0.8119, the high of May 2 and a three-year high.

Earlier in the day, media outlets in New Zealand reported that China Investment Corporation may have set aside up to 1.5% or NZD6 billion of its foreign-exchange reserves to invest in New Zealand assets, including government bonds, companies and potentially dairy farms.

Meanwhile, New Zealand’s Finance Minister Bill English said at a conference in Hong Kong that he “won’t be surprised” if the Chinese company invested in his country’s bonds. He also said New Zealand planned to double exports to China within four years.

The kiwi was also higher against its Australian cousin, with AUD/NZD shedding 0.59% to hit 1.3097.

Later Thursday, the U.S. was to publish revised government data on first quarter economic growth as well as a weekly report on initial jobless claims.

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