New Zealand dollar higher on NZ consumer confidence data

The New Zealand dollar increased against its US counterpart on Monday, after optimistic New Zealand data. Investors, however, remained wary ahead of Federal Reserve Banks Wednesday policy meeting.

NZD/USD pair hit 0.8102 during late Asian trade, currently the session high, after which consolidation followed at 0.8089. The cross added 0.60% for the day. Support was expected at June 4th low, 0.7968, while resistance was to be met at June 14th high, 0.8137.

Earlier on Monday it became clear that the Westpac NZ Consumer Confidence indicator rose to 116.6 during the second quarter of the year, while during Q1 the indicator stood at 110.8. Q2 reading was the best result of the index since the second quarter of 2010, just before the massive earthquake, that shattered the countrys economy. Readings above 100.0 indicate optimistic projections for economy, while values below 100.0 are related to pessimistic forecasts. Data showed that consumer expectations, regarding the financial prospects of households in new Zealand, recorded a positive net balance of 10.1%, improving from 7.2%, as was stated in the previous survey.

Additionally, Business NZ Performance of Services Index (PSI) remained at the level of 56.2 in May, unchanged according to revised data during the preceding period.

US dollar was broadly losing ground against its major peers during last week, as expectations gained strength that FED will embark on a scale back of bond purchases later this year. Market players await FEDs meeting on Wednesday for clues on rate statement.

New Zealand dollar was higher against its Australian peer as well, with AUD/NZD dropped to 1.1892, erasing 0.11%.