Investing.com - The New Zealand dollar rose against its U.S. counterpart on Thursday, pulling away from a five-day low but the kiwi remained under pressure as concerns over a potential Spanish bailout weighed on demand for risk-related assets.
NZD/USD hit 0.7556 during late Asian trade, the daily high; the pair subsequently consolidated at 0.7551, adding 0.27%.
The pair was likely to find support at 0.7454, the low of May 23 and a six-month low and resistance at 0.7632, Wednesday’s high.
The kiwi came under pressure as the increasing likelihood of Spain needing an international bailout added to concerns over the worsening of the euro zone’s debt crisis, after Spanish 10-year bonds climbed to 6.7% earlier, nearing the critical 7% threshold.
Italian borrowing costs also rose sharply after a 5 and 10-year bond auctions on Wednesday met with lackluster investor demand, indicating that concerns over Spain and uncertainty over the outcome of elections in Greece next month are having a negative impact on Italy.
Meanwhile, Greece worries reemerged after an opinion poll showed that anti-bailout party Syriza took the lead in the June 17 election race.
Elsewhere, the National Bank of New Zealand said that its index of business confidence fell to 27.1 in May from a reading of 35.8 the previous month.
The kiwi was steady against the euro with EUR/NZD easing 0.09%, to hit 1.6408.
Later in the day, the U.S. was to release reports on non-farm employment change and unemployment claims, as well as preliminary gross domestic product data.
NZD/USD hit 0.7556 during late Asian trade, the daily high; the pair subsequently consolidated at 0.7551, adding 0.27%.
The pair was likely to find support at 0.7454, the low of May 23 and a six-month low and resistance at 0.7632, Wednesday’s high.
The kiwi came under pressure as the increasing likelihood of Spain needing an international bailout added to concerns over the worsening of the euro zone’s debt crisis, after Spanish 10-year bonds climbed to 6.7% earlier, nearing the critical 7% threshold.
Italian borrowing costs also rose sharply after a 5 and 10-year bond auctions on Wednesday met with lackluster investor demand, indicating that concerns over Spain and uncertainty over the outcome of elections in Greece next month are having a negative impact on Italy.
Meanwhile, Greece worries reemerged after an opinion poll showed that anti-bailout party Syriza took the lead in the June 17 election race.
Elsewhere, the National Bank of New Zealand said that its index of business confidence fell to 27.1 in May from a reading of 35.8 the previous month.
The kiwi was steady against the euro with EUR/NZD easing 0.09%, to hit 1.6408.
Later in the day, the U.S. was to release reports on non-farm employment change and unemployment claims, as well as preliminary gross domestic product data.