Investing.com - The New Zealand dollar was sharply lower against the U.S. dollar on Monday, as concerns over the worsening debt crisis in the euro zone weighed on demand for higher-yielding, riskier assets.
NZD/USD hit 0.7919 during late Asian trade, the pair’s lowest since July 13; the pair subsequently consolidated at 0.7924, shedding 0.89%.
The pair was likely to find support at 0.7860, the low of July 12 and resistance at 0.7989, the session high.
Concerns that Spain may require a full bailout intensified on Friday, after the state of Valencia requested financial aid from Madrid. In addition, Spain’s government cut growth forecasts for 2013 and said the economy would stay in recession next year.
The yield on Spanish 10-year bonds rose to a record 7.37% earlier Monday, above the critical 7% threshold widely considered unsustainable in the long run.
The kiwi was down sharply against the broadly stronger yen, with NZD/JPY dropping 1.56% to 61.79 and was lower against its Australian counterpart, with AUD/NZD up 0.20% to 1.3000. The kiwi eased back from a record high against the euro, with EUR/NZD rising 0.37% to 1.5258, off an earlier low of 1.5171.
Earlier Monday, official data showed that Australian producer price inflation rose 0.5% in June, outstripping expectations for a 0.3% increase, following a 0.3% drop in May.
NZD/USD hit 0.7919 during late Asian trade, the pair’s lowest since July 13; the pair subsequently consolidated at 0.7924, shedding 0.89%.
The pair was likely to find support at 0.7860, the low of July 12 and resistance at 0.7989, the session high.
Concerns that Spain may require a full bailout intensified on Friday, after the state of Valencia requested financial aid from Madrid. In addition, Spain’s government cut growth forecasts for 2013 and said the economy would stay in recession next year.
The yield on Spanish 10-year bonds rose to a record 7.37% earlier Monday, above the critical 7% threshold widely considered unsustainable in the long run.
The kiwi was down sharply against the broadly stronger yen, with NZD/JPY dropping 1.56% to 61.79 and was lower against its Australian counterpart, with AUD/NZD up 0.20% to 1.3000. The kiwi eased back from a record high against the euro, with EUR/NZD rising 0.37% to 1.5258, off an earlier low of 1.5171.
Earlier Monday, official data showed that Australian producer price inflation rose 0.5% in June, outstripping expectations for a 0.3% increase, following a 0.3% drop in May.