The New Zealand dollar spiked up against other major currencies on Friday, as the investor sentiment lifted in response to Federal Reserve Chairman Ben Bernake's statement that the central bank intends to maintain highly accommodative policy for the foreseeable future.
While speaking to the Senate Banking Committee, Bernake told on Thursday that country's inflation remains in check, allowing the Fed to keep unprecedented support measures in place until the unemployment rate significantly improves.
"We have not changed policy. We are not tightening policy," Bernanke said during the question and answer session, referring to the bank's $85 billion a month bond buying program.
Bernanke has stated previously that the program might be tapered down by year's end if the economy continues to improve.
The Reserve Bank of New Zealand will announce its interest rate decision next week, at which the rates will be maintained at 2.5 percent. Economists are forecasting the rates to be on hold for 2013 given upside risks from housing and consumer spending.
Net migration in New Zealand was a seasonally adjusted increase of 2,330 people in June, Statistics New Zealand said early in the day, compared to the previous month.
That follows the gain of 1,740 people in May, and it also marked a four-year high since 2,600 people were added in May 2009. According to the data released by the Reserve Bank of New Zealand, New Zealand's credit card spending increased in June, recovering from a decline in the previous month.
Card spending rose 2.6 percent month-on-month in June following a 0.4 percent fall in the preceding month. Year-on-year, spending rose 5.4 percent.
The kiwi hit an 8-day high of 0.7955 against the greenback and an uptrend above the 0.797 handle will bring it to the highest level reached on June 19. The kiwi may probably test resistance around the 0.805 level.
The kiwi firmed to 1.1542 against the Australian dollar, a level not seen since November 2008. The next resistance for the kiwi lies around the 1.14 area.
The kiwi climbed back against the yen, reaching 79.77 for the first time since June 5. On the upside, 81.00 is seen as the next resistance level for the kiwi.
The kiwi strengthened to 1.6498 against the euro, highest since July 11. If the kiwi continues its bull run, its next likely resistance is seen at the 1.63 level.
