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Forex - NZD/USD hits fresh 1-month low as global risk appetite hit

Published 11/30/2010, 06:52 AM
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EUR/NZD
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Investing.com – New Zealand’s dollar was down against its U.S. counterpart on Tuesday as global risk appetite was hit by fears over sovereign debt contagion in the euro zone and talk of higher Chinese interest rates as well as disappointing Japanese jobless figures.

NZD/USD hit 0.7412 during European morning trade, the pair’s lowest since October 28; the pair subsequently consolidated at 0.7451, shedding 0.10%.

The pair was likely to find support at 0.7356, the low of October 5 and resistance at 0.7534, Monday’s high.

Earlier in the day, sentiment was hit by a report that a Chinese academic suggested that Beijing will need to hike rates another 2% and by news that the jobless rate in Japan had risen to 5.1% in October form 5.0% in September.

Earlier in the day, the cost of insuring Spanish and Italian sovereign debt against default rose to hit the highest levels since the launch of the single currency, reflecting a lack of confidence that the deal to bailout Ireland would contain the euro zone's debt crisis.

Meanwhile, the kiwi was up against the euro, with EUR/NZD shedding 0.59% to hit 1.7495.

Later Tuesday, the U.S. was to publish industry data on house prices, as well as data on consumer confidence. The country was also to release an index of manufacturing growth in the Chicago area, while Federal Reserve Chairman, Ben Bernanke was to speak at a public engagement.

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