Investing.com - The New Zealand dollar was higher against its U.S. counterpart on Wednesday, after upbeat inflation data out of New Zealand, while concerns over the U.S. budget impasse persisted.
NZD/USD hit 0.8408 during late Asian trade, the pair's highest since September 19; the pair subsequently consolidated at 0.8415, rising 0.41%.
The pair was likely to find support at 0.8308, the low of October 14 and near-term resistance at 0.8436, the high of September 19.
Official data showed that consumer price inflation in New Zealand rose 0.9% in the thrid quarter, exceeding expectations for a 0.8% increase, after a 0.2% uptick in the three months to June.
But markets were jittery after Fitch ratings agency placed its triple-A rating on the U.S. on “rating watch negative” on Tuesday and said a downgrade is possible.
The ratings agency said the political impasse over a deal to reopen the government and raise the debt ceiling has undermined confidence in U.S. economic policy.
If an agreement to raise the federal borrowing limit is not struck ahead of Thursday’s deadline, the U.S. will face an unprecedented sovereign debt default.
Senate leaders were continuing negotiations aimed at ending the fiscal impasse, after a last minute deal put forward by House Republicans collapsed on Tuesday.
The kiwi was higher against the euro with EUR/NZD declining 0.54%, to hit 1.6067.
NZD/USD hit 0.8408 during late Asian trade, the pair's highest since September 19; the pair subsequently consolidated at 0.8415, rising 0.41%.
The pair was likely to find support at 0.8308, the low of October 14 and near-term resistance at 0.8436, the high of September 19.
Official data showed that consumer price inflation in New Zealand rose 0.9% in the thrid quarter, exceeding expectations for a 0.8% increase, after a 0.2% uptick in the three months to June.
But markets were jittery after Fitch ratings agency placed its triple-A rating on the U.S. on “rating watch negative” on Tuesday and said a downgrade is possible.
The ratings agency said the political impasse over a deal to reopen the government and raise the debt ceiling has undermined confidence in U.S. economic policy.
If an agreement to raise the federal borrowing limit is not struck ahead of Thursday’s deadline, the U.S. will face an unprecedented sovereign debt default.
Senate leaders were continuing negotiations aimed at ending the fiscal impasse, after a last minute deal put forward by House Republicans collapsed on Tuesday.
The kiwi was higher against the euro with EUR/NZD declining 0.54%, to hit 1.6067.