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Forex - NZD/USD falls to 1-month low on Spain jitters

Published 10/15/2012, 04:03 AM
Updated 10/15/2012, 04:04 AM
NZD/USD
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AUD/NZD
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Investing.com - The New Zealand dollar fell to a one-month low against its U.S. counterpart on Monday, as risk sentiment weakened amid ongoing uncertainty over whether Spain is about to request a sovereign bailout.

NZD/USD hit 0.8131 during European morning trade, the pair's lowest since September 11; the pair subsequently consolidated at 0.8150, slipping 0.18%.

The pair was likely to find support at 0.8082, the low of September 11 and resistance at 0.8210, the high of October 12.

Investors remained cautious as Madrid did not request financial aid over the weekend and a request for a bailout is now seen as increasingly unlikely ahead of regional elections on October 21.

Elsewhere in the euro zone, Greek Prime Minister Antonis Samaras said Sunday his country was facing the "last hurdle" before recovery and expressed confidence that the government will reach an agreement with international creditors ahead of Thursday’s European Union summit.

Meanwhile, the greenback remained supported after official data on Fridau showed that U.S. consumer sentiment rose to its highest level in five years in October and a separate report showing that producer price inflation rose more-than-forecast in September.

The kiwi was lower against the Australian dollar with AUD/NZD adding 0.19%, to hit 1.2559.

Also Monday, official data showed that home loans in Australia rose more-than-expected in August, advancing 1.8% after a 0.7% decline the previous month. Analysts had expected home loans to rise 1.4% in August.

A separate report showed that Australia's new motor vehicle sales rose by 4.7% in September after 4.3% increase the previous month.

Later in the day, the U.S. was to release official data on retail sales, as well as a report on business inventories.


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