The New Zealand dollar touched two-month highs against the greenback on Monday, and the Austrian dollar also rose, as investors were worried over the timing of a U.S. rate
hike which continued to weigh on demand for the dollar.
The greenback was pressured due to uncertainty over the path of U.S. monetary policy after the Federal Reserve downgraded its forecasts for growth and inflation and lowered its interest rate projections last week.
Despite the past week’s reversal the U.S. dollar is predicted to continue to strengthen, with the Fed still expected to raise interest rates ahead of other central banks.
NZD/USD hit 0.7664 during late Asian trade, the pair's highest since January 21; the pair subsequently consolidated at 0.7603, gaining 0.50%. The pair was likely to find support at 0.7540, the low of March 4 and resistance at 0.7712, the high of January 21.
The kiwi was higher against the Australian dollar, with AUD/NZD shedding 0.49% to 1.0232.
The U.S. is expected to issue a report on existing home sales.
