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Forex - NZD/USD drops to 12-day low on Greece worries

Published 03/05/2012, 03:14 AM
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AUD/NZD
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Investing.com - The New Zealand dollar dropped to a twelve-day low against its U.S. counterpart on Monday, as sustained concerns over the handling of Greece’s debt crisis weighed on demand for riskier assets.

NZD/USD hit 0.8260 during late Asian trade, the pair’s lowest since February 16; the pair subsequently consolidated at 0.8269, declining 0.27%.

The pair was likely to find support at 0.8212, the low of February 1 and resistance at 0.8340, the high of February 16.

Risk sentiment weakened ahead of the March 8 deadline for bondholders to join the agreement under which they will exchange their existing Greek government bonds for new paper in a swap deal that will see the nominal value of their holdings cut by 53.5%.

The risk-related kiwi was also hit after Spain’s government raised its budget deficit target to 5.8% of gross domestic product for 2012, compared to a previous target of 4.4% on Friday, sparking concerns over the viability of the European Union’s new fiscal treaty.

Meanwhile, the kiwi was fractionally lower against the Australian dollar with AUD/NZD edging up 0.03%, to hit 1.2947.

Also Monday, data showed that job advertisements in Australia rose 3.3% in February after a 7.5% increase the previous month, while company operating profits fell unexpectedly in the fourth quarter.

A separate report showed that Australia’s services sector contracted in February.

Later in the day, the U.S. was to produce government data on factory orders, while the Institute of Supply Management was to release a report on service sector growth.


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