Forex - NZD/USD hits 3-day low on Spain bailout uncertainty

Published 09/24/2012, 04:00 AM
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AUD/NZD
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Investing.com - The New Zealand dollar dropped to a three-day low against its U.S. counterpart on Monday, as risk sentiment weakened amid ongoing uncertainty over whether Spain will request a full scale sovereign bailout.

NZD/USD hit 0.8220 during early European trade, the pair's lowest since September 20; the pair subsequently consolidated at 0.8242, shedding 0.56%.

The pair was likely to find support at 0.8198, the low of September 13 and resistance at 0.8285, the high of September 18.

Madrid is to present its draft budget for next year and announce structural reforms on Thursday, while the results of bank stress tests are due on Friday. In addition, ratings agency Moody’s is expected to complete a ratings review on Spain later this week.

Over the weekend, Spain’s economy minister said the country would not rush to seek external financial aid, as pressure mounted on Spain to seek a bailout.

Greece also added to concerns, after its finance ministry dismissed German media reports that the country's budget shortfall could be as much as EUR20 billion, almost twice as much as previously thought.

The kiwi was lower against the Australian dollar with AUD/NZD adding 0.24%, to hit 1.2643.

Later in the day, Germany was to release data on business climate.


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