Forex - NZD/USD declines amid euro zone concerns

Published 03/18/2013, 04:03 AM
Updated 03/18/2013, 04:04 AM
NZD/USD
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AUD/NZD
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Investing.com - The New Zealand dollar declined against its U.S. counterpart on Monday, as market sentiment broadly weakened after news of a bailout deal for Cypruse sparked fresh concerns over the sovereign debt crisis in the euro zone.

NZD/USD hit 0.8218 during late Asian trade, the pair's lowest since March 15; the pair subsequently consolidated at 0.8240, sliding 0.43%.

The pair was likely to find support at 0.8194, the low of March 15 and resistance at 0.8279, the high of March 15.

On Saturday, the European Union and International Monetary Fund reached an agreement on a EUR10 billion bailout for Cyprus. In return for the bailout international creditors demanded that all bank customers must pay a one-time tax on deposits.

The agreement marked the first time since the onset of the debt crisis that depositors have been forced to take a haircut in return for financial aid and triggered a run on cash machines in Cyprus over the weekend.

The parliament in Cyprus was to vote on whether to approve the tax proposal later in the day. If the vote was defeated media outlets in Cyprus said banks could remain closed on Tuesday, following a public holiday on Monday, to avoid mass withdrawals.

The kiwi was steady against the Australian dollar with AUD/NZD dipping 0.05%, to hit 1.2575.

Also Monday, official data showed that new motor vehicle sales in Australia were flat in February, after a 2.2% rise the previous month.


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