Investing.com - The New Zealand dollar was lower against its U.S. counterpart on Monday, as the downgrade by Standard and Poor’s of nine euro zone countries, including France, weighed on demand for riskier assets.
NZD/USD hit 0.7919 during late Asian trade, the daily low; the pair subsequently consolidated at 0.7931, retreating 0.20%.
The pair was likely to find support at 0.7864, the low of January 13 and resistance at 0.7979, the high of January 12.
S&P cut ratings on Italy, Spain, Cyprus and Portugal by two notches and downgraded Malta, Slovakia and Slovenia by one level. Germany kept its triple-A rating.
The ratings agency also said it would decide shortly whether to do the same for the euro zone’s bailout fund, the European Financial Stability Facility.
European Central Bank policymaker Ewald Nowotny said on Sunday the central bank would do all it could to calm the situation after the downgrade.
Meanwhile, markets were eyeing a series of key meetings this week.
French President Nicolas Sarkozy was to meet with Spain's Mariano Rajoy in Madrid later Monday, while Italian Premier Mario Monti was to visit Britain's David Cameron on Wednesday, before hosting Sarkozy and German Chancellor Angela Merkel in Rome at the end of the week.
Elsewhere, the kiwi was higher against the Australian dollar with AUD/NZD shedding 0.09%, to hit 1.2989.
Markets in the U.S. remained closed for Martin Luther King Day.
NZD/USD hit 0.7919 during late Asian trade, the daily low; the pair subsequently consolidated at 0.7931, retreating 0.20%.
The pair was likely to find support at 0.7864, the low of January 13 and resistance at 0.7979, the high of January 12.
S&P cut ratings on Italy, Spain, Cyprus and Portugal by two notches and downgraded Malta, Slovakia and Slovenia by one level. Germany kept its triple-A rating.
The ratings agency also said it would decide shortly whether to do the same for the euro zone’s bailout fund, the European Financial Stability Facility.
European Central Bank policymaker Ewald Nowotny said on Sunday the central bank would do all it could to calm the situation after the downgrade.
Meanwhile, markets were eyeing a series of key meetings this week.
French President Nicolas Sarkozy was to meet with Spain's Mariano Rajoy in Madrid later Monday, while Italian Premier Mario Monti was to visit Britain's David Cameron on Wednesday, before hosting Sarkozy and German Chancellor Angela Merkel in Rome at the end of the week.
Elsewhere, the kiwi was higher against the Australian dollar with AUD/NZD shedding 0.09%, to hit 1.2989.
Markets in the U.S. remained closed for Martin Luther King Day.