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Forex - NZD/USD hits fresh 1-month low amid Korea tensions

Published 11/29/2010, 05:55 AM
NZD/USD
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EUR/NZD
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Investing.com – New Zealand’s dollar was down against its U.S. counterpart on Monday, falling to a fresh 1-month low as concerns about simmering tensions on the Korean peninsula hit demand for regional currencies.

NZD/USD hit 0.7448 during European morning trade, the pair’s lowest since September 28; the pair subsequently consolidated at 0.7483, shedding 0.20%.

The pair was likely to find support at 0.7404, the low of September 27 and resistance at 0.7621, last Friday’s high.

Early in the day, South Korean President Lee Myung-bak strongly rebuked North Korea over its deadly attack on South Korea's Yeonpyeong island last week and vowed to punish any further military provocation by the North.

“It’s become clear that more patience and tolerance only leads to bigger provocations,” Lee said, during a national address from Seoul. “North Korea will be made to pay for any further provocation no matter what.”

Meanwhile, the kiwi was up against the euro, with EUR/NZD shedding 0.11% to hit 0.7642.

Also Monday, official data showed that New Zealand’s trade deficit narrowed significantly more-than-expected in October, led by a surge in dairy exports amid increased global prices and demand from China.

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