Investing.com - The New Zealand dollar fell against its U.S. counterpart on Tuesday, after weak New Zealand business confidence data and amid few signs of progress in tackling the sovereign debt crisis in the euro zone.
NZD/USD hit 0.7931 during late Asian trade, the daily low; the pair subsequently consolidated at 0.7941, retreating 0.27%.
The pair was likely to find support at 0.7886, the low of June 18 and resistance at 0.8016, the low of June 21.
The New Zealand Institute of Economic Research said earlier that its index of business confidence fell to minus 4 in the second quarter from a reading of 13 in the previous quarter.
Market sentiment also came under pressure after a meeting of euro zone finance ministers on Monday offered few signs of progress in tackling the region’s debt crisis.
Euro zone ministers agreed to push Spain’s deadline to reach its deficit reduction targets back to 2014 in exchange for further budget savings and set the parameters of an aid package for Madrid's ailing banks.
They made no apparent progress, however, on activating the bloc's rescue funds to intervene in bond markets and bring down Spain and Italy’s spiraling borrowing costs.
Spain’s 10-year government bonds were hovering at 7.03% earlier Tuesday, while Italy’s 10-year bonds were at 6.10%, both above the 6% threshold which is widely seen as unsustainable.
Meanwhile, concerns over the outlook for global economic growth persisted after data showed that China's imports in June grew at half the expected pace, underscoring that the country’s economy and domestic demand are cooling quickly, even though export growth was slightly better than expected.
China is New Zealand’s second biggest export partner.
Elsewhere, the kiwi was lower against the euro with EUR/NZD adding 0.12%, to hit 1.5480.
Later in the day, France and Italy were to produce official data on industrial production.
Euro zone finance ministers were to hold a second day of talks in Brussels.
NZD/USD hit 0.7931 during late Asian trade, the daily low; the pair subsequently consolidated at 0.7941, retreating 0.27%.
The pair was likely to find support at 0.7886, the low of June 18 and resistance at 0.8016, the low of June 21.
The New Zealand Institute of Economic Research said earlier that its index of business confidence fell to minus 4 in the second quarter from a reading of 13 in the previous quarter.
Market sentiment also came under pressure after a meeting of euro zone finance ministers on Monday offered few signs of progress in tackling the region’s debt crisis.
Euro zone ministers agreed to push Spain’s deadline to reach its deficit reduction targets back to 2014 in exchange for further budget savings and set the parameters of an aid package for Madrid's ailing banks.
They made no apparent progress, however, on activating the bloc's rescue funds to intervene in bond markets and bring down Spain and Italy’s spiraling borrowing costs.
Spain’s 10-year government bonds were hovering at 7.03% earlier Tuesday, while Italy’s 10-year bonds were at 6.10%, both above the 6% threshold which is widely seen as unsustainable.
Meanwhile, concerns over the outlook for global economic growth persisted after data showed that China's imports in June grew at half the expected pace, underscoring that the country’s economy and domestic demand are cooling quickly, even though export growth was slightly better than expected.
China is New Zealand’s second biggest export partner.
Elsewhere, the kiwi was lower against the euro with EUR/NZD adding 0.12%, to hit 1.5480.
Later in the day, France and Italy were to produce official data on industrial production.
Euro zone finance ministers were to hold a second day of talks in Brussels.