Forex - NZD/USD rises but upside seen limited

Published 09/25/2012, 04:07 AM
NZD/USD
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AUD/NZD
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Investing.com - The New Zealand dollar rose against its U.S. counterpart on Tuesday, but gains were expected to be limited as market sentiment remained under pressure amid concerns over the worsening of the debt crisis in the euro zone.

NZD/USD hit 0.8260 during European morning trade, the daily high; the pair subsequently consolidated at 0.8253, rising 0.27%.

The pair was likely to find support at 0.8184, Monday's low and resistance at 0.8285, the high of September 18.

Market sentiment weakened after a drop in German business sentiment to its lowest since early 2010 stoked concerns on Monday about a slowdown in the euro zone's largest economy, despite the European Central Bank's recently announced bond-buying plan.

Meanwhile, Spain also remained in focus amid fears the country is dragging its feet in requesting the international bailout that most market participants expect.

On Thursday Madrid is to present its draft budget for next year and announce structural reforms, 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.

Elsewhere, the kiwi was higher against the Australian dollar with AUD/NZD falling 0.24%, to hit 1.2637.

Later in the day, European Central Bank President Mario Draghi was to meet with German Chancellor Angela Merkel in Berlin.


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