The NZ dollar appreciated against its major counterparts in the Asian session on Tuesday, as traders await the U.S. Federal Reserve’s monetary policy meeting for any signs of a shift in its policy outlook.
The two-day meeting begins later in the day, with investors seeking hints on the timing of tapering its asset purchase program.
Although the Fed has repeatedly assured that any rise in inflation would be transitory, investors hope that officials could commence discussions on the QE withdrawal at the meeting.
Oil prices rose as the possibility of more Iranian crude reaching the markets receded following tense talks between the United States and Iran.
An Iranian government spokesman said that the landmark accord was being delayed to resolve key sticking points.
The kiwi advanced to 4-day highs of 0.7161 against the greenback and 78.81 against the yen, off its prior lows of 0.7131 and 78.50, respectively. The kiwi is seen facing resistance around 0.73 against the greenback and 80 against the yen.
The kiwi reversed from an early low of 1.0801 against the aussie and gained to a 4-day high of 1.0771. If the kiwi rises further, 1.06 is likely seen as its next resistance level.
In contrast, the kiwi fell back to 1.6985 against the euro, pulling back from an early high of 1.6937. This may be compared to a 4-day low of 1.6991 seen at 10:15 pm ET. The next possible support for the currency is seen around the 1.71 level.
Looking ahead, Eurozone trade data for April is due in the European session.
At 8:15 am ET, Canada housing starts for May are scheduled for release.
U.S. retail sales, PPI and industrial production for May and NAHB housing market index for June will be out in the New York session.
The material has been provided by InstaForex Company – www.instaforex.com