Investing.com – The New Zealand dollar was down sharply against its U.S. counterpart on Tuesday, as concerns over the financial crisis in the euro zone escalated, dampening investor demand for riskier assets.
NZD/USD hit 0.8165 during late Asian trade, the pair’s lowest since last Thursday; the pair subsequently consolidated at 0.8198, shedding 0.61%.
The pair was likely to find support at 0.8119, last Thursday’s low and an almost one-month low and resistance at 0.8286, Monday’s high.
Fears over the euro zone debt crisis mounted after Standard & Poor’s downgraded its debt rating on Italy by one notch, citing weak economic growth and increasing political difficulties.
Meanwhile, talks to discuss whether Greece has done enough to access its next tranche of bailout funds ended Monday without reaching an agreement. Greece’s Finance Minister Evangelos Venizelos said the discussions were “substantive” and would continue late Tuesday, but added some work still needed to be done.
The kiwi was also down against its Australian cousin, with AUD/NZD climbing 0.58% to hit 1.2460.
Concerns over a possible rate cut by the Reserve Bank of Australia eased earlier after the minutes of the bank’s September 6 policy meeting showed that policymakers believed it was better to keep rates steady in the light of uncertainty over the global outlook.
NZD/USD hit 0.8165 during late Asian trade, the pair’s lowest since last Thursday; the pair subsequently consolidated at 0.8198, shedding 0.61%.
The pair was likely to find support at 0.8119, last Thursday’s low and an almost one-month low and resistance at 0.8286, Monday’s high.
Fears over the euro zone debt crisis mounted after Standard & Poor’s downgraded its debt rating on Italy by one notch, citing weak economic growth and increasing political difficulties.
Meanwhile, talks to discuss whether Greece has done enough to access its next tranche of bailout funds ended Monday without reaching an agreement. Greece’s Finance Minister Evangelos Venizelos said the discussions were “substantive” and would continue late Tuesday, but added some work still needed to be done.
The kiwi was also down against its Australian cousin, with AUD/NZD climbing 0.58% to hit 1.2460.
Concerns over a possible rate cut by the Reserve Bank of Australia eased earlier after the minutes of the bank’s September 6 policy meeting showed that policymakers believed it was better to keep rates steady in the light of uncertainty over the global outlook.