Forex - NZD/USD down on ongoing E.Z. worries

Published 11/03/2011, 04:05 AM
NZD/USD
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EUR/NZD
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Investing.com - The New Zealand dollar tumbled to a three-week low against its U.S. counterpart on Thursday, as sustained concerns over the outcome of Greece's bailout referendum weighed on demand for riskier assets.

NZD/USD hit 0.7806 during late Asian trade, the pair's lowest since October 12; the pair subsequently consolidated at 0.7849, shedding 0.84%.

The pair was likely to find support at 0.7741, the low of October 12 and resistance at 0.7956, the high of September 27.

At a meeting in Cannes on Wednesday, French and German leaders warned Greek Prime Minister George Papandreou that his country would not receive any more European aid until it decides whether it wants to stay in the euro zone.

Meanwhile, the euro zone's bailout fund, the European Financial Stability Facility, was forced to put on hold plans to raise EUR3 billion in the bond market, adding to the region's turmoil.

Also Thursday, official data showed that employment in New Zealand rose less-than-expected in the third quarter, inching up 0.2% from a 0.1% increase the previous quarter. Analysts had expected employment to rise 0.5% in the third quarter.

The report also showed that the unemployment rate advanced to 6.6%, up from 6.5% in the second quarter.

Elsewhere, the kiwi was lower against the euro with EUR/NZD rising 0.36%, to hit 1.7430.

Later in the day, the European Central Bank was to hold its first policy setting meeting chaired by new head, Mario Draghi. Meanwhile, the U.S. was to produce its weekly report on initial jobless claims as well as a report on service sector activity from the Institute of Supply Management.

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