Investing.com - The New Zealand dollar was moderately higher against its U.S. counterpart on Wednesday, but the kiwi remained under pressure as concerns over the handling of the financial crisis in the euro zone continued to weigh on demand for riskier assets.
NZD/USD hit 0.7958 during late Asian trade, the daily high; the pair subsequently consolidated at 0.7947, edging up 0.09%.
The pair was likely to find support at 0.7907, the low of June 19 and resistance at 0.8016, the high of June 21.
Risk sentiment remained under pressure after Germany’s Constitutional Court delayed on Tuesday its decision on whether the euro zone's bailout fund, the European Stability Mechanism, and planned changes to the region's budget rules are compatible with German law.
Without German backing, the ESM, which was originally meant to start on July 1, then delayed to July 9, cannot come into effect.
In addition, the latest meeting of euro zone finance ministers failed to reassure investors. While the ministers agreed to grant Spain an extra year through 2014 to reach its deficit reduction targets, they did not come up with a final figure for aid for the country's ailing banks but said some 30 billion euros would be available by the end of this month.
Markets were also eyeing the minutes of the Federal Reserve’s most recent policy meeting to be published later in the day, amid speculation that the central bank may implement further monetary easing measures to shore up growth.
The kiwi was lower against the Australian dollar with AUD/NZD adding 0.19%, to hit 1.2859.
Also Wednesday, a report by the Westpac Banking Corporation showed that consumer sentiment in Australia improved by 3.7% in July, following a 0.3% rise the previous month.
Later in the day, the U.S. was to release official data on trade balance and crude oil stockpiles, followed by the minutes of the Fed’s June policy-setting meeting.
NZD/USD hit 0.7958 during late Asian trade, the daily high; the pair subsequently consolidated at 0.7947, edging up 0.09%.
The pair was likely to find support at 0.7907, the low of June 19 and resistance at 0.8016, the high of June 21.
Risk sentiment remained under pressure after Germany’s Constitutional Court delayed on Tuesday its decision on whether the euro zone's bailout fund, the European Stability Mechanism, and planned changes to the region's budget rules are compatible with German law.
Without German backing, the ESM, which was originally meant to start on July 1, then delayed to July 9, cannot come into effect.
In addition, the latest meeting of euro zone finance ministers failed to reassure investors. While the ministers agreed to grant Spain an extra year through 2014 to reach its deficit reduction targets, they did not come up with a final figure for aid for the country's ailing banks but said some 30 billion euros would be available by the end of this month.
Markets were also eyeing the minutes of the Federal Reserve’s most recent policy meeting to be published later in the day, amid speculation that the central bank may implement further monetary easing measures to shore up growth.
The kiwi was lower against the Australian dollar with AUD/NZD adding 0.19%, to hit 1.2859.
Also Wednesday, a report by the Westpac Banking Corporation showed that consumer sentiment in Australia improved by 3.7% in July, following a 0.3% rise the previous month.
Later in the day, the U.S. was to release official data on trade balance and crude oil stockpiles, followed by the minutes of the Fed’s June policy-setting meeting.