The New Zealand dollar rose on Thursday after the central bank warned interest rates will likely rise soon, while fears of eurozone contagion and uncertainty about US debt talks kept the Australian near a 29-year high. The kiwi dollar rose as high as $0.8735, after the Reserve Bank of New Zealand held rates at 2.5 percent but flagged a rate hike in the near future as the economy gathers pace and inflation pressures rise.
Support for the kiwi, which was last traded at $0.8721, is seen at the hourly overnight low of $0.8680, with the new high of $0.8766 the first line of resistance ahead of $0.8800. Across the Tasman sea, the Aussie also shined, with a gain of 0.3 percent to $1.1059 as investors dumped the euro and regional stocks on renewed contagion fears in the euro zone.
The Aussie hit a fresh 29-year peak of $1.1081 during the offshore session as investors flocked to currencies backed by stronger economies. The Australian dollar also marched higher against almost everything from the yen, euro, Swiss franc to kiwi, and broke a 26-year peak against the British pound at A$1.4796.
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