Investing.com - The New Zealand dollar edged higher against its U.S. counterpart on Tuesday, but gains were seen to remain limited as concerns over political uncertainty in Italy and the outlook for growth in the euro zone continued to dampen market sentiment.
NZD/USD hit 0.8304 during late Asian trade, the pair's highest since February 28; the pair subsequently consolidated at 0.8289, adding 0.16%.
The pair was likely to find support at 0.8241, the low of February 28 and resistance at 0.8324, the high of February 28.
Market sentiment remained under pressure amid concerns that Italy will be unable to pass structural reforms and austerity measures as the country edged closer to fresh elections after inconclusive elections last week.
Concerns over the outlook for Italy, the euro zone’s third largest economy, fuelled speculation over a possible rate cut by the ECB in the coming months.
The kiwi was lower against the Australian dollar with AUD/NZD rising 0.24%, to hit 1.2347.
Also Tuesday, the Reserve Banf of Australia held its benchmark interest rate at a 50-year low of 3%, in a widely expected decision, saying that the bank's current monetary policy is appropriate.
The announcement came after official data showed that retail sales in Australia rose 0.9% in January, more than the expected 0.4% increase, after a 0.4% decline the previous month.
A separate report showed that Australia's current account deficit narrowed to AUD14.7 billion in the fourth quarter, from a deficit of AUD15 billion in the previous quarter. Analysts had expected the current account deficit to widen to AUD15.4 billion in the last quarter.
Later in the day, the U.S. Institute of Supply Management was to release a report on service sector activity.
NZD/USD hit 0.8304 during late Asian trade, the pair's highest since February 28; the pair subsequently consolidated at 0.8289, adding 0.16%.
The pair was likely to find support at 0.8241, the low of February 28 and resistance at 0.8324, the high of February 28.
Market sentiment remained under pressure amid concerns that Italy will be unable to pass structural reforms and austerity measures as the country edged closer to fresh elections after inconclusive elections last week.
Concerns over the outlook for Italy, the euro zone’s third largest economy, fuelled speculation over a possible rate cut by the ECB in the coming months.
The kiwi was lower against the Australian dollar with AUD/NZD rising 0.24%, to hit 1.2347.
Also Tuesday, the Reserve Banf of Australia held its benchmark interest rate at a 50-year low of 3%, in a widely expected decision, saying that the bank's current monetary policy is appropriate.
The announcement came after official data showed that retail sales in Australia rose 0.9% in January, more than the expected 0.4% increase, after a 0.4% decline the previous month.
A separate report showed that Australia's current account deficit narrowed to AUD14.7 billion in the fourth quarter, from a deficit of AUD15 billion in the previous quarter. Analysts had expected the current account deficit to widen to AUD15.4 billion in the last quarter.
Later in the day, the U.S. Institute of Supply Management was to release a report on service sector activity.