The New Zealand dollar soared to new multi-month highs against its European, US, Japanese and Australian counterparts during Monday's early Asian trading as a surge in equities increased investor's risk appetite.
Traders mulled over the comments by Fed Chairman Ben Bernanke that the policies initiated to unclog the credit markets are showing positive signals and supporting the markets.
Positive closing on Wall Street on Friday also lifted sentiment on growing optimism that the worst of the global economic crisis is over and the initiatives of the governments will yield positive results in the near term.
The New Zealand dollar climbed to new multi-month highs of 0.5981 against the US dollar and 60.37 against the yen on Monday's early Asian trading. The next upside target level for the kiwi-dollar pair is seen around 0.60 and kiwi-yen pair at 61.60. The kiwi closed Friday's New York session deals at 0.5869 against the greenback and 58.85 against the Japanese unit.
Japanese February leading and coincident index have been scheduled to be released at 1:00 am ET.
No economic reports are due from the US today. The Fed governor Kevin Warsh will speak about the financial markets at a conference in Washington D.C. at 1:00 pm ET.
Against its European counterpart, the NZ dollar climbed to its highest level since January 13, 2009 during Monday's early Asian trading. At about 9:30 pm ET, the kiwi hit as high as 2.2725 against the euro, compared to 2.3012 hit late Friday in New York. On the upside, the kiwi may likely target the 2.17 level against the European currency.
The euro-zone producer price and retail sales reports-both for the month of February are due out in the upcoming European session. Analysts expect the PPI to drop 1.5 percent, while the retail sales to decline 2.5 percent on year in February.
The New Zealand dollar edged up against the Aussie, climbing to a new multi-month high of 1.2050 by about 9:30 pm ET. This may be compared to last week's closing value of 1.2212. If the New Zealand dollar rises further, 1.20 is seen as the next likely resistance level.
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