Investing.com - The New Zealand dollar was lower against its U.S. counterpart on Wednesday, as ongoing concerns over soaring borrowing costs in Spain and the handling of the country’s troubled banking sector weighed on risk sentiment.
NZD/USD hit 0.7634 during late Asian trade, the daily low; the pair subsequently consolidated at 0.7609, shedding 0.25%.
The pair was likely to find support at 0.7574, the low of May 28 and resistance at 0.7656, the high of May 21.
The yield on Spanish 10-year bonds climbed to their highest level so far this year on Tuesday, approaching the critical 7% threshold, after a Spanish official said the government is preparing to recapitalize Bankia, one of the country’s largest commercial lenders.
European Central Bank officials had earlier signaled they would oppose any attempt to fund Bankia’s EUR19 billion recapitalization via the central bank's lending facilities.
Meanwhile, Bank of Spain Governor Miguel Angel Fernandez Ordonez resigned a month early, handing to his successor the task of convincing investors that Spanish banks will not need an international bailout.
In New Zealand, official data showed earlier that building consents dropped 7.2% in April, after a 19.6% increase the previous month.
Elsewhere, the kiwi was steady against the euro with EUR/NZD easing up 0.04%, to hit 1.6398.
Later in the day, the U.S. was to release industry data on pending home sales.
NZD/USD hit 0.7634 during late Asian trade, the daily low; the pair subsequently consolidated at 0.7609, shedding 0.25%.
The pair was likely to find support at 0.7574, the low of May 28 and resistance at 0.7656, the high of May 21.
The yield on Spanish 10-year bonds climbed to their highest level so far this year on Tuesday, approaching the critical 7% threshold, after a Spanish official said the government is preparing to recapitalize Bankia, one of the country’s largest commercial lenders.
European Central Bank officials had earlier signaled they would oppose any attempt to fund Bankia’s EUR19 billion recapitalization via the central bank's lending facilities.
Meanwhile, Bank of Spain Governor Miguel Angel Fernandez Ordonez resigned a month early, handing to his successor the task of convincing investors that Spanish banks will not need an international bailout.
In New Zealand, official data showed earlier that building consents dropped 7.2% in April, after a 19.6% increase the previous month.
Elsewhere, the kiwi was steady against the euro with EUR/NZD easing up 0.04%, to hit 1.6398.
Later in the day, the U.S. was to release industry data on pending home sales.