Forex - NZD/USD falls to 4-month low, focus on Greece

Published 05/14/2012, 02:58 AM
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Investing.com - The New Zealand dollar fell to a four-month low against its U.S. counterpart on Monday, as sustained concerns over political deadlock in Greece continued to weigh on demand for riskier assets.

NZD/USD hit 0.7798 during late Asian trade, the pair’s lowest since January 9; the pair subsequently consolidated at 0.7809, declining 0.25%.

The pair was likely to find support at 0.7750, the low of January 2 and resistance at 0.7878, the high of May 11.

Greece's party leaders failed on Sunday to bridge differences in a marathon effort to form a coalition government, spurring the president to call a last-ditch meeting for Monday in an attempt to break a week-long political impasse amid fears the country may be forced out of the euro zone.

A new round of elections seemed the most likely however as radical left Syriza party declined to participate in Monday's talks.

Adding to concerns, ratings agency Fitch warned Friday that it would place the sovereign ratings of all euro zone members on review pending possible downgrades, if Greece was to exit the euro zone as a result of its current crisis.

In New Zealand, official data showed that retail sales fell 1.5%, more than expectations for a 0.7% decline and following a 1.8% rise in the fourth quarter.

Elsewhere, the kiwi was fractionally lower against the euro with EUR/NZD inching up 0.07%, to hit 1.6509.

Later in the day, the U.S. was to produce industry data on mortgage delinquencies.  


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