Investing.com - The New Zealand dollar fell to a three-week low against its U.S. counterpart on Tuesday, as market sentiment was hit by concerns the outcome of the parliamentary election in Italy could threaten financial stability in the euro zone.
NZD/USD hit 0.8307 during late Asian trade, the pair's lowest since February 7; the pair subsequently consolidated at 0.8307, shedding 0.22%.
The pair was likely to find support at 0.8280, the low of January 28 and resistance at 0.8364, the high of February 21.
Italy’s center-left party led by the Democratic Party's Pier Luigi Bersani won the majority of votes in the lower house, the chamber of deputies, and was likely to receive the mandate to form a government.
However, projections indicated that no party would be able to form a majority in the upper house or Senate, which could send Italy back to the polls.
Earlier in the day, the Reserve Bank of New Zealand said that its inflation expectations ticked down to 2.2% in fourth quarter, from 2.3% in the previous quarter.
The kiwi was steady against the euro with EUR/NZD easing 0.06%, to hit 1.5697.
Market participants were looking ahead to congressional testimony from Federal Reserve chief Ben Bernanke later in the trading day, after last week’s minutes of the central bank’s January meeting showed that some policymakers favored an early end to the Fed's monetary easing measures.
NZD/USD hit 0.8307 during late Asian trade, the pair's lowest since February 7; the pair subsequently consolidated at 0.8307, shedding 0.22%.
The pair was likely to find support at 0.8280, the low of January 28 and resistance at 0.8364, the high of February 21.
Italy’s center-left party led by the Democratic Party's Pier Luigi Bersani won the majority of votes in the lower house, the chamber of deputies, and was likely to receive the mandate to form a government.
However, projections indicated that no party would be able to form a majority in the upper house or Senate, which could send Italy back to the polls.
Earlier in the day, the Reserve Bank of New Zealand said that its inflation expectations ticked down to 2.2% in fourth quarter, from 2.3% in the previous quarter.
The kiwi was steady against the euro with EUR/NZD easing 0.06%, to hit 1.5697.
Market participants were looking ahead to congressional testimony from Federal Reserve chief Ben Bernanke later in the trading day, after last week’s minutes of the central bank’s January meeting showed that some policymakers favored an early end to the Fed's monetary easing measures.