Investing.com - The New Zealand dollar was sharply lower against its U.S. counterpart on Tuesday, tracking losses in the Australian dollar amid concerns over a slowdown in the Chinese economy and after dovish Reserve Bank of Australia minutes.
NZD/USD hit 0.8200 during late Asian trade, the pair’s lowest since Friday; the pair subsequently consolidated at 0.8203, shedding 0.70%.
The pair was likely to find support at 0.8114, the low of March 7 and resistance at 0.8267, the session high.
The Australian dollar weakened earlier after the country’s largest miner BHP Billiton said Chinese demand for iron ore was "flattening out." China is Australia’s largest and New Zealand’s second largest trading partner
Meanwhile, the minutes of the RBA’s March meeting showed that policymakers believe there is "ample scope" to cut interest rates in the event of a sharp slowdown in the economy arising from the debt crisis in the euro zone.
The kiwi was fractionally higher against its Australian cousin but fell against the yen, with AUD/NZD inching down 0.08% to hit 1.2824 and NZD/JPY shedding 0.48% to hit 68.51.
Later in the day, the U.S. was to produce official data on building permits and housing starts. Meanwhile, Federal Reserve Chairman Ben Bernanke was to speak at an event in Washington; his comments would be closely watched.
Also Tuesday, New Zealand was to publish official data on the current account and visitor arrivals.
NZD/USD hit 0.8200 during late Asian trade, the pair’s lowest since Friday; the pair subsequently consolidated at 0.8203, shedding 0.70%.
The pair was likely to find support at 0.8114, the low of March 7 and resistance at 0.8267, the session high.
The Australian dollar weakened earlier after the country’s largest miner BHP Billiton said Chinese demand for iron ore was "flattening out." China is Australia’s largest and New Zealand’s second largest trading partner
Meanwhile, the minutes of the RBA’s March meeting showed that policymakers believe there is "ample scope" to cut interest rates in the event of a sharp slowdown in the economy arising from the debt crisis in the euro zone.
The kiwi was fractionally higher against its Australian cousin but fell against the yen, with AUD/NZD inching down 0.08% to hit 1.2824 and NZD/JPY shedding 0.48% to hit 68.51.
Later in the day, the U.S. was to produce official data on building permits and housing starts. Meanwhile, Federal Reserve Chairman Ben Bernanke was to speak at an event in Washington; his comments would be closely watched.
Also Tuesday, New Zealand was to publish official data on the current account and visitor arrivals.