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Forex - NZD/USD almost unchanged, focus on E.Z.

Published 05/21/2012, 03:05 AM
NZD/USD
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AUD/NZD
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Investing.com - The New Zealand dollar was almost unchanged against its U.S. counterpart on Monday, as investors remained cautious over the financial crisis in the euro zone despite pledges by European leaders to fight the region’s debt woes.

NZD/USD hit 0.7611 during late Asian trade, the daily high; the pair subsequently consolidated at 0.7558, easing 0.04%.

The pair was likely to find support at 0.7520, the low of May 18 and a five-month low and resistance at 0.7648, the high of May 18.

At the G8 summit on Saturday, world leaders backed keeping Greece in the euro zone and revitalizing a global economy increasingly threatened by the debt crisis in the euro zone.

Italy's Prime Minister Mario Monti said Europe and Greece will find a solution that will protect the euro zone and potentially keep Greece in the monetary union.

But investors remained cautious after newly elected Greek politicians last week were unable to form a government and strong gains were made by opponents of a joint European-International Monetary Fund bailout.

Elsewhere, the kiwi was also steady against the Australian dollar with AUD/NZD retreating 0.05%, to hit 1.3010.

Meanwhile, investors were also eyeing a first meeting between German Finance Minister Wolfgang Schaeuble and his newly installed French counterpart, Pierre Moscovici, in Berlin later Monday, as European Union leaders were preparing for a summit in Brussels on May 23.

After three shorter meetings in the last week, Chancellor Angela Merkel and French President Francois Hollande will seek to balance France’s desire to jump-start growth with Germany’s preference for spending cuts.


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