Forex - NZD/USD drops to daily low as greenback rallies

Published 12/06/2010, 06:17 AM
NZD/USD
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EUR/NZD
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Investing.com – New Zealand’s dollar was down against its U.S. counterpart on Monday, dropping to a daily low as the U.S. dollar staged a broad rally after remarks by Federal Reserve Chairman, Ben Bernanke.

NZD/USD hit 0.7586 during European morning trade, the daily low; the pair subsequently consolidated at 0.7602, shedding 0.76%.

The pair was likely to find support at 0.7453, last Thursday’s low and resistance at 0.7673, Friday’s high.

In an interview with CBS's "60 Minutes" aired Sunday, Bernanke said, “It doesn't seem likely that we'll have a double-dip recession.”

Bernanke said a renewed recession was not likely because sectors of the economy such as housing could not become much more depressed and said it could take four to five years before the U.S. returned to a more normal jobless rate.

Bernanke also said purchases of Treasuries beyond the USD600 billion announced last month were “certainly possible.”

Meanwhile, the kiwi was up against the euro, with EUR/NZD shedding 0.36% to hit 1.7448.

Later in the day, euro zone finance ministers were due to meet in Brussels. The ministers faced pressure to increase the size of a EUR 750 billion safety net for indebted euro members, in order to arrest sovereign debt contagion in the single currency bloc.

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