Investing.com - The New Zealand dollar rose against its U.S. counterpart on Wednesday, as the Reserve Bank of New Zealand eased concerns over a potential rate cut in the near future, although gains were limited by continued support for the greenback.
NZD/USD hit 0.6588 during late Asian trade, the session high; the pair subsequently consolidated at 0.6556, gaining 0.41%.
The pair was likely to find support at 0.6496, Tuesday's low and resistance at 0.6650, the high of November 5.
In its biannual Financial Stability Report, the RBNZ said "there is less scope for monetary policy easing to offset a sharp rise in funding spreads."
The report also noted that financial stability risks had risen, highlighting the health of New Zealand's housing and dairy sectors in particular.
But the greenback remained supported as last week's strong U.S. employment data paved the way for the Federal Reserve to raise interest rates at its December meeting.
The Labor Department reported on Friday that the U.S. economy added 271,000 jobs last month, well ahead of expectations of the 180,000 expected by economists and the largest increase since December.
The unemployment rate fell to a seven-and-a-half year low of 5.0%.
The kiwi was also higher against the euro, with EUR/NZD shedding 0.28% to 1.6378.