The New Zealand dollar strengthened against the other major currencies in the Asian session on Thursday amid rising risk appetite, helped by a rebound in crude oil prices.
Crude oil ended sharply higher on increased demand for gasoline with the U.S. Energy Information Administration weekly report showing a marked decline in gasoline stocks last week. Prices have also been impacted after Iran’s nuclear program talks with the West have been extended as the sides failed to reach an agreement by Tuesday’s deadline.
Traders will be watching the U.S. jobs report for March due Friday, which is closely watched by the Fed. While, the equity markets will be closed for the Good Friday holiday.
Uncertainty concerning the U.S. Federal Reserve’s monetary policy normalization schedule has also been weighing on the kiwi in recent sessions.
Wednesday, The NZ dollar fell against its major rivals as prices for dairy products fell in the the latest GlobalDairyTrade auction held overnight, amid concern about an increase in supply. The NZ dollar fell about 0.17 percent against the U.S. dollar, 0.52 percent against the yen, 0.45 percent against the euro and 0.38 percent against the Australian dollar.
In the Asian trading today, the NZ dollar rose to a record high of 1.0146 against the Australian dollar, from yesterday’s closing value of 1.0193.
Against the U.S. dollar, the yen and the euro, the kiwi edged up to 0.7468, 89.35 and 1.4413 from yesterday’s closing quotes of 0.7447, 89.19 and 1.4434, respectively. If the kiwi extends its uptrend, it is likely to find resistance around 0.78 against the greenback, 90.50 against the yen and 1.40 against the euro.’
Looking ahead, U.K. Markit/CIPS construction PMI for March is due to be released in the European session.
In the New York session, Canada merchandise trade data for February, U.S. weekly jobless claims for the week ended March 28 and U.S. trade balance and factory orders – both for February are slated for release.
At 3:45 pm ET, U.S. Federal Reserve Governor Lael Brainard is expected to speak at the Ninth Biennial Federal Reserve System Community Development Research Conference in Washington DC.
The material has been provided by InstaForex Company – www.instaforex.com