New Zealand dollar traded steadily against its US counterpart on Monday, as expectations of the Federal Reserve Bank paring back its stimulus soon continued to support the greenback.
NZD/USD reached a session high at 0.7951 at 0:40 GMT, the highest point since July 19th, after which consolidation followed at 0.7931. Support was expected at July 18th low, 0.7849, while resistance was to be met at July 19th high, 0.7990.
On July 18th, in his second day of testimony on monetary policy before the Financial Services Committee in US Congress last week, FED Chairman Ben Bernanke reiterated that monetary policy will remain accommodative in the foreseeable future, even as the central bank begins to scale back its asset purchasing program. On July 17th Bernanke said the central bank expected to begin tapering asset purchases by the end of the year, but also added that monetary policy was not on a “preset course”.
Elsewhere, the kiwi dollar was lower against the Australian dollar, as AUD/NZD pair advanced 0.42% to 1.1626 at 7:28 GMT.
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