Investing.com – The New Zealand dollar was down against its U.S. counterpart on Monday, trading close to a five-month low, after the country’s prime minister reiterated his support for a cut in the benchmark interest rate.
NZD/USD hit 0.7366 during late Asian trade, the daily low; the pair subsequently consolidated at 0.7375, shedding 0.12%.
The pair was likely to find support at 0.7337, Friday’s low and a five-month low and resistance at 0.7472, last Thursday’s high.
On Sunday, New Zealand’s Treasury estimated the total cost of both Canterbury earthquakes at NZD15 billion, a figure the government’s economic agency said was “best described as a working assumption, rounded to the nearest NZD5 billion.”
The Treasury also said the February 22 earthquake will reduce growth in economic activity by about 1.5% in 2011.
Earlier in the day, New Zealand’s Prime Minister John Key said that lower borrowing costs would be helpful to the country. Key said last week he would “welcome” a reduction in interest rates.
The kiwi was also lower against the euro, with EUR/NZD rising 0.14% to hit 1.8965.
Also Monday, official data showed that New Zealand’s home-building approvals rose in January by the most in almost two years, before last month’s earthquake derailed the economic recovery. Permits increased 9.6% from December, when they fell by 18.2%.
NZD/USD hit 0.7366 during late Asian trade, the daily low; the pair subsequently consolidated at 0.7375, shedding 0.12%.
The pair was likely to find support at 0.7337, Friday’s low and a five-month low and resistance at 0.7472, last Thursday’s high.
On Sunday, New Zealand’s Treasury estimated the total cost of both Canterbury earthquakes at NZD15 billion, a figure the government’s economic agency said was “best described as a working assumption, rounded to the nearest NZD5 billion.”
The Treasury also said the February 22 earthquake will reduce growth in economic activity by about 1.5% in 2011.
Earlier in the day, New Zealand’s Prime Minister John Key said that lower borrowing costs would be helpful to the country. Key said last week he would “welcome” a reduction in interest rates.
The kiwi was also lower against the euro, with EUR/NZD rising 0.14% to hit 1.8965.
Also Monday, official data showed that New Zealand’s home-building approvals rose in January by the most in almost two years, before last month’s earthquake derailed the economic recovery. Permits increased 9.6% from December, when they fell by 18.2%.