Investing.com - The New Zealand dollar edged up against its U.S. counterpart on Monday, as market sentiment improved after the results of stress tests on Europe’s largest banks showed that most of the region’s top lenders could survive another financial crisis.
NZD/USD hit 0.7884 during late Asian trade, the session high; the pair subsequently consolidated at 0.7868, adding 0.17%.
The pair was likely to find support at 0.7792, the low of October 13 and resistance at 0.7984, the high of October 20.
Investor confidence improved after the European Central Bank announced the results of yearlong tests to assess the finances on 150 banks on Sunday. Overall, 25 banks were found to have a capital shortfall, but most have already taken steps to resolve this, the ECB said.
In total, 13 banks still need to come up with a total of €9.5 billion in extra capital, which was at the lower end of market expectations.
Meanwhile, sentiment on the greenback remained vulnerable as fears that a slowdown in global economic growth could act as a drag on the U.S. economic recovery have prompted investors to push back expectations for an increase in interest rates by the Federal Reserve to the second half of 2015.
The kiwi was higher against the Australian dollar, with AUD/NZD slipping 0.17% to 1.1179.
Later in the day, the U.S. was to publish an industry report on pending home sales.