NZ Dollar Extends Gain As Buck Remains Under Pressure

The New Zealand dollar continued to be strong against the other major currencies in the Asian session, as the kiwi built up on the momentum it picked up on the weakness of the U.S. dollar, which has been weakening on profit taking.

That said, activity remains light, as many traders stayed away from their desk ahead of the upcoming New Year’s Day holiday.

Investors look forward to the release of U.S. consumer confidence data due later in the day and pending home sales data for November, due on Wednesday. U.S. weekly jobless claims and the Chicago business barometer are slated for Thursday.

Monday, the NZ dollar rose 0.07 percent against the U.S. dollar, 0.19 percent against the yen, 0.08 percent against the euro and 0.53 percent against the Australian dollar.

In the Asian trading, the NZ dollar rose to more than a 2-month high of 0.6865 against the U.S. dollar, from yesterday’s closing value of 0.6843. The kiwi may test resistance near the 0.69 area.

Against the euro and the yen, the kiwi advanced to 1-week highs of 1.5985 and 82.61 from yesterday’s closing quotes of 1.6001 and 82.36, respectively. If the kiwi extends its uptrend, it is likely to find resistance near 1.57 against the euro and 83.50 against the yen.

The kiwi edged up to 1.0574 against the Australian dollar, from an early low of 1.0592. On the upside, 1.04 is seen as the next resistance level for the aussie.

Looking ahead, advance U.S. goods trade balance for November, U.S. S&P/Case-Shiller home price index for October and U.S. consumer confidence index for December are due to be released in the New York session.

The material has been provided by InstaForex Company – www.instaforex.com

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