Investing.com - The New Zealand dollar pulled away from a four-month low against its U.S. counterpart on Tuesday, but gains were limited as concerns over the outcome of political turmoil in Greece continued to dampen market sentiment.
NZD/USD hit 0.7798 during late Asian trade, the session high; the pair subsequently consolidated at 0.7784, adding 0.24%.
The pair was likely to find support at 0.7707, the low of December 30 and resistance at 0.7825, the high of May 14.
Sentiment found mild support after preliminary data showed that Germany’s economy expanded more-than-expected in the first quarter, indicating that the euro zone’s largest economy is weathering the effects of the crisis in the region.
But markets were jittery as Greece’s President Karolos Papoulias was due to hold a fresh round of cross party talks aimed at forming a government later in the day, after a more than week-long political stalemate fuelled fears over the country’s ability to uphold its financial commitments and its possible exit from the euro zone.
Concerns over slowing Chinese growth also weighed on commodity-linked currencies, after data showed the country’s foreign direct investment inflows dipped 2.4% in April, posting a fourth consecutive loss after a 2.8% decline the previous month.
Elsewhere, the kiwi was lower against the Australian dollar with AUD/NZD adding 0.25%, to hit 1.2853.
Also Tuesday, the Reserve Bank of Australia said in the minutes of its May 1 policy meeting that “the risks emanating from Europe continue to cloud the global outlook,” adding that “inflation is likely to remain in the lower half of the target range over the foreseeable future.”
Later in the day, the U.S. was to publish official data on retail sales and consumer price inflation, followed by reports on manufacturing activity in New York, U.S. net long-term securities transactions and business inventories.
NZD/USD hit 0.7798 during late Asian trade, the session high; the pair subsequently consolidated at 0.7784, adding 0.24%.
The pair was likely to find support at 0.7707, the low of December 30 and resistance at 0.7825, the high of May 14.
Sentiment found mild support after preliminary data showed that Germany’s economy expanded more-than-expected in the first quarter, indicating that the euro zone’s largest economy is weathering the effects of the crisis in the region.
But markets were jittery as Greece’s President Karolos Papoulias was due to hold a fresh round of cross party talks aimed at forming a government later in the day, after a more than week-long political stalemate fuelled fears over the country’s ability to uphold its financial commitments and its possible exit from the euro zone.
Concerns over slowing Chinese growth also weighed on commodity-linked currencies, after data showed the country’s foreign direct investment inflows dipped 2.4% in April, posting a fourth consecutive loss after a 2.8% decline the previous month.
Elsewhere, the kiwi was lower against the Australian dollar with AUD/NZD adding 0.25%, to hit 1.2853.
Also Tuesday, the Reserve Bank of Australia said in the minutes of its May 1 policy meeting that “the risks emanating from Europe continue to cloud the global outlook,” adding that “inflation is likely to remain in the lower half of the target range over the foreseeable future.”
Later in the day, the U.S. was to publish official data on retail sales and consumer price inflation, followed by reports on manufacturing activity in New York, U.S. net long-term securities transactions and business inventories.