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Forex - NZD/USD tumbles as Greece debt fears hit risk appetite

Published 06/27/2011, 02:55 AM
NZD/USD
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AUD/NZD
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Investing.com – The New Zealand dollar tumbled to a seven-day low against its U.S. counterpart on Monday, as uncertainty ahead of a key Greek vote on economic reforms demanded by international lenders dampened demand for riskier assets.

NZD/USD hit 0.8009 during late Asian trade, the pair’s lowest since June 16; the pair subsequently consolidated at 0.8026, tumbling 1.29%.

The pair was likely to find support at 0.7971, the low of June 16 and a three-week low and resistance at 0.8175, Friday’s high.

Earlier in the day, official data showed that New Zealand’s trade surplus contracted more-than-expected in May, due to a sharp drop in dairy export volumes and a spike in oil and aircraft part imports.

Statistic New Zealand said the trade balance was NZD605 million in surplus last month, from April’s record NZD 1.148 billion. Economists expected the balance to shrink to NZD1 billion in May.

The New Zealand dollar was also lower against its Australian cousin, with AUD/NZD rising 0.49% to hit 1.2983.

Also Monday, local media outlets in New Zealand reported that rebuilding in the earthquake hit south island city of Christchurch may be delayed until aftershocks cease, fanning concerns over the nation’s economic recovery.

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