Investing.com - The New Zealand dollar rose against its U.S. counterpart on Monday, as the currency recovered from the China's central bank unexpected decision to cut interest rates on Friday.
NZD/USD hit 0.6793 during European morning trade, the session high; the pair subsequently consolidated at 0.6772, gaining 0.30%.
The pair was likely to find support at 0.6693, the low of October 22 and resistance at 0.6873, the high of October 23.
The New Zealand dollar weakened after the Popular Bank of China unexpectedly cut interest rates on Friday. It was the sixth rate cut since last November, amid efforts by authorities to shore up slowing growth in the world’s second largest economy.
Separately, the greenback remained supported after European Central Bank President Mario Draghi said the ECB had discussed lowering the deposit rate at its meeting last Thursday and added that that the bank could enlarge its asset purchase program or speed up bond purchases.
The comments underlined the diverging monetary policy stance between the Federal Reserve and central banks in the rest of the world. The Fed is currently expected to start hiking interest rates sometime in early 2016.
The kiwi was higher against the euro, with EUR/NZD edging down 0.11% to 1.6298.