Forex - NZD/USD rises as market sentiment recovers

Published 06/18/2012, 02:53 AM
NZD/USD
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EUR/NZD
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Investing.com - The New Zealand dollar climbed to a one-and-a-half month high against its U.S. counterpart on Monday, as risk sentiment strengthened after Greek elections results eased fears of the country’s potential exit from the euro zone.

NZD/USD hit 0.7940 during late Asian trade, the pair’s highest since May 8; the pair subsequently consolidated at 0.7934, climbing 0.69%.

The pair was likely to find support at 0.7857, the low of May 8 and resistance at 0.8018, the high of May 4.

Sentiment strengthened as political parties supporting Greece's international bailout were to begin forging a government on Monday, after an election victory over radical leftists staved off the prospect of the debt-laden country leaving the euro zone.

Conservative New Democracy leader Antonis Samaras called for broad support after winning Sunday's election over the radical Syriza party, which had threatened to cancel the aid deal in defiance of the country's lenders.

Investors remained cautious however, as concerns over the handling of Greece’s financial crisis persisted while all eyes turned to Germany for any possibility of concessions on the harsh budgetary restrictions imposed on Athens.

In New Zealand, a report by the Westpac Banking Corporation showed earlier that its index of consumer sentiment declined to 99.9 in the second quarter, from a reading of 102.4 in the previous quarter.

The kiwi was also higher against the euro with EUR/NZD falling 0.25%, to hit 1.6002.

Later in the day, a two-day G-20 summit was set to begin, amid hopes it could produce fresh measures to combat the crisis in Europe.


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