NEW YORK (Forex News Now) – The New Zealand dollar soared against the greenback on Wednesday, as the US currency took a pounding against most major counterparts due to poor economic data on the domestic front.
In currency market trading, NZD/USD hit 0.7610 at around 9:00 A.M., GMT, up 0.72% on the day.
The greenback has been under pressure all week over a report showing that American consumer confidence fell unexpectedly this month, as well as negative data on house prices.
According to NZD/USD analysis, the kiwi was likely to touch support around yesterday’s low of 0.7489, and to encounter resistance around 0.7673, the high of Dec. 3.
The kiwi’s gain also came as demand for “commodity currencies” increased following a decision by China’s Commerce Ministry to reduce its export quotas for rare earth minerals by 11 per cent, lowering supply for the commodities.
Elsewhere, the New Zealand dollar also rose strongly against the yen: NZD/JPY traded at 62.59, up 0.61% on the day.