Investing.com - The New Zealand dollar was sharply lower against its U.S. counterpart on Wednesday, as comments by Spain's prime minister and sustained concerns over an economic slowdown in China weighed on demand for risk-related assets.
NZD/USD hit 0.8206 during European morning trade, the pair's lowest since September 26; the pair subsequently consolidated at 0.8210, dropping 0.79%.
The pair was liekly to find support at 0.8171, the low of September 12 and resistance at 0.8276, the session high.
Risk sentiment weakened after Spanish Prime Minister Mariano Rajoy on Tuesday ruled out a bailout request before this weekend, despite persistent speculation that Madrid was moving closer to requesting external financial aid.
Separately, the greenback found support after official data showed that growth in China’s service sector moderated in September, underlining concerns over a slowdown in the world’s second largest economy.
Elsewhere, the kiwi was lower against the euro with AUD/NZD rising 0.30%, to hit 1.2441.
Also Wednesday, official data showed that Australia’s trade deficit widened to AUD2.03 billion in August from a deficit of AUD1.53 billion the previous month.
Analysts had expected Australia’s trade deficit to narrow to AUD0.70 billion in August.
Later in the day, the U.S. was to produce a report on ADP nonfarm payrolls and the Institute of Supply Management was to produce data on U.S. service sector activity.
NZD/USD hit 0.8206 during European morning trade, the pair's lowest since September 26; the pair subsequently consolidated at 0.8210, dropping 0.79%.
The pair was liekly to find support at 0.8171, the low of September 12 and resistance at 0.8276, the session high.
Risk sentiment weakened after Spanish Prime Minister Mariano Rajoy on Tuesday ruled out a bailout request before this weekend, despite persistent speculation that Madrid was moving closer to requesting external financial aid.
Separately, the greenback found support after official data showed that growth in China’s service sector moderated in September, underlining concerns over a slowdown in the world’s second largest economy.
Elsewhere, the kiwi was lower against the euro with AUD/NZD rising 0.30%, to hit 1.2441.
Also Wednesday, official data showed that Australia’s trade deficit widened to AUD2.03 billion in August from a deficit of AUD1.53 billion the previous month.
Analysts had expected Australia’s trade deficit to narrow to AUD0.70 billion in August.
Later in the day, the U.S. was to produce a report on ADP nonfarm payrolls and the Institute of Supply Management was to produce data on U.S. service sector activity.