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Forex - NZD/USD dips as Japan, Mideast worries weigh

Published 03/23/2011, 04:05 AM
NZD/USD
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NZD/JPY
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Investing.com – The New Zealand dollar dipped to a daily low against its U.S. counterpart on Wednesday, as concerns over Japan’s nuclear crisis and ongoing political unrest in the Middle East and North Africa weighed on risk appetite.

NZD/USD hit 0.7376 during late Asian trade, the daily low; the pair subsequently consolidated at 0.7384, slipping 0.08%.

The pair was likely to find support at 0.7336, Tuesday’s low and resistance at 0.7454, the high of March 11.

Earlier in the day, fresh concerns over Japan’s nuclear crisis surfaced after the Tokyo metropolitan government advised families against allowing infants to drink tap water after higher-than-permitted levels of radioactive iodine were detected.

Meanwhile, political unrest in the Middle East continued to escalate after Syrian troops opened fire on protesters and Yemen's president warned that the country would slip into civil war if he was forced to resign.    

The kiwi was also down against the yen, with NZD/JPY shedding 0.28% to hit 59.74.

Also Wednesday, official data showed that New Zealand’s current account deficit widened to NZD3.52 billion in the fourth quarter, from a revised deficit of NZD29 million in the third quarter. Analysts had forecast a deficit of NZD2.15 billion.


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