Investing.com - The New Zealand dollar fell to three-day low against its U.S. counterpart on Wednesday, following remarks by New Zealand Prime Minister John Key but sentiment remained mildly supported as investors hoped for fresh action by the European Central Bank.
NZD/USD hit 0.8119 during late Asian trade, the pair’s lowest since August 3; the pair subsequently consolidated at 0.8126, shedding 0.47%.
The pair was likely to find support at 0.8069, the low of August 2 and resistance at 0.8197, the high of August 3.
The kiwi came under pressure after Prime Minister John Key said on Tuesday there may be scope for the central bank to lower borrowing costs.
Key added that the onus is on the nation’s central bank and private investors to aid economic growth, as he seeks to eliminate a budget deficit.
Sentiment remained supported however, amid expectations that the ECB will soon take steps to help lower Spanish and Italian borrowing costs, after bank head Mario Draghi indicated last week that the bank may restart its bond buying program.
The ECB said action would be conditional on euro zone governments experiencing difficulty on bond markets activating the bloc’s bailout funds to purchase government bonds and accepting strict conditions and supervision.
The kiwi was lower against the Australian dollar with AUD/NZD rising 0.32%, to hit 1.2973.
Also Wednesday, official data showed that home loans in Australia rose less-than-expected in June, ticking up 1.3% after a 0.9% decline the previous month.
Analysts had expected home loans to rise 2.1% in June.
Later in the day, the U.S. was to release preliminary data on nonfarm productivity, followed by a government report on crude oil inventories.
NZD/USD hit 0.8119 during late Asian trade, the pair’s lowest since August 3; the pair subsequently consolidated at 0.8126, shedding 0.47%.
The pair was likely to find support at 0.8069, the low of August 2 and resistance at 0.8197, the high of August 3.
The kiwi came under pressure after Prime Minister John Key said on Tuesday there may be scope for the central bank to lower borrowing costs.
Key added that the onus is on the nation’s central bank and private investors to aid economic growth, as he seeks to eliminate a budget deficit.
Sentiment remained supported however, amid expectations that the ECB will soon take steps to help lower Spanish and Italian borrowing costs, after bank head Mario Draghi indicated last week that the bank may restart its bond buying program.
The ECB said action would be conditional on euro zone governments experiencing difficulty on bond markets activating the bloc’s bailout funds to purchase government bonds and accepting strict conditions and supervision.
The kiwi was lower against the Australian dollar with AUD/NZD rising 0.32%, to hit 1.2973.
Also Wednesday, official data showed that home loans in Australia rose less-than-expected in June, ticking up 1.3% after a 0.9% decline the previous month.
Analysts had expected home loans to rise 2.1% in June.
Later in the day, the U.S. was to release preliminary data on nonfarm productivity, followed by a government report on crude oil inventories.