New Zealand dollar advanced against its US counterpart on Tuesday, following the release of positive business confidence data from New Zealand.
NZD/USD pair hit a session high at 0.7873 at 7:01 GMT, after which consolidation followed at 0.7860. Support was expected at July 3rd low, 0.7710, while resistance was to be encountered at June 10th high, 0.7923.
Earlier on Tuesday it was reported that NZ Institute of Economic Research Inc. (NZIER) Business Confidence index increased to a value of 32 during the second quarter of the year from 23 in the preceding quarter. These results were based on a quarterly business survey, encompassing manufacturers, builders, architects, retail sellers and companies, operating in the sector of services. Collected data is valuable, as it could give direction, regarding business investments and overall economic development in New Zealand in the coming quarters.
In the mean time, demand for the greenback remained strong, following the release of data on July 5th, that showed economy in the United States added 195 000 job positions in June, exceeding the 165 000 increase, projected by experts. In June FED Chairman Ben Bernanke said that the central bank intended to scale back its easing program by the end of 2013, if US economic conditions were to meet FEDs objectives.
Elsewhere, New Zealand dollar was little changed against its Australian peer, as AUD/NZD cross dipped by 0.04% to 1.1700.