Investing.com - The New Zealand dollar fell to two-week lows against the U.S. dollar on Wednesday as demand for risk sensitive assets was hit by worries over the economic impact of the U.S. government shutdown.
NZD/USD hit 0.8194 during late Asian trade, the lowest since September 17; the pair subsequently consolidated at 0.8215, shedding 0.72%.
The pair was likely to find support at 0.8158, the low of September 17 and resistance at 0.8278, the session high.
Investor confidence was hit by concerns that the first U.S. government shutdown for 17 years would curb the economic recovery and prompt the Federal Reserve to maintain its stimulus program for longer.
Markets were also mulling over how the political deadlock in Washington will impact on negotiations to raise the U.S. debt ceiling, which the U.S. Treasury Department has estimated will be reached by October 17.
The kiwi was also lower against the Australian dollar in spite of data showing that the Australian trade deficit was larger than forecast in August and Australian building approvals fell more-than-expected.
AUD/NZD was up 0.24% to trade at 1.1382.
Data released on Wednesday showed that Australia posted a deficit of AUD0.82 billion in August from a revised deficit of AUD1.38 billion in July. Economists had expected the trade deficit to contract to AUD0.45 billion.
Another report showed the number of building permits issued in August fell 4.7% from a month earlier, following a 10.2% increase in July. Analysts had expected building permits to decline 2%.
NZD/USD hit 0.8194 during late Asian trade, the lowest since September 17; the pair subsequently consolidated at 0.8215, shedding 0.72%.
The pair was likely to find support at 0.8158, the low of September 17 and resistance at 0.8278, the session high.
Investor confidence was hit by concerns that the first U.S. government shutdown for 17 years would curb the economic recovery and prompt the Federal Reserve to maintain its stimulus program for longer.
Markets were also mulling over how the political deadlock in Washington will impact on negotiations to raise the U.S. debt ceiling, which the U.S. Treasury Department has estimated will be reached by October 17.
The kiwi was also lower against the Australian dollar in spite of data showing that the Australian trade deficit was larger than forecast in August and Australian building approvals fell more-than-expected.
AUD/NZD was up 0.24% to trade at 1.1382.
Data released on Wednesday showed that Australia posted a deficit of AUD0.82 billion in August from a revised deficit of AUD1.38 billion in July. Economists had expected the trade deficit to contract to AUD0.45 billion.
Another report showed the number of building permits issued in August fell 4.7% from a month earlier, following a 10.2% increase in July. Analysts had expected building permits to decline 2%.