Investing.com - The New Zealand dollar was steady against its U.S. counterpart on Tuesday, as investors continued to eye developments in the euro zone amid concerns over political uncertainty in Italy and Spain.
NZD/USD hit 0.8412 during late Asian trade, the pair's lowest since February 1; the pair subsequently consolidated at 0.8432, inching down 0.03%.
The pair was likely to find support at 0.8396, the low of February 1 and resistance at 0.8471, the high of February 4.
Fresh political uncertainty in Spain and Italy revived fears over the debt crisis in the region, pushing peripheral borrowing costs higher.
Spanish Prime Minister Mariano Rajoy faced calls to step down following allegations of corruption against him and senior officials in the ruling Popular Party, while uncertainty over the outcome of upcoming Italian elections mounted as former Prime Minister Silvio Berlusconi gained ground in opinion polls.
The kiwi was higher against the Australian dollar with AUD/NZD falling 0.17%, to hit 1.2355.
Also Tuesday, in a widely expected move, the Reserve Bank of Australia left its benchmark interest rate unchanged at 3%, but said that it could cut rates to a record low in the future, as the weak labor market contninues to contain inflation.
Separately, official data showed that Australia's trade deficit narrowed more-than-expected in December, improving to AUD0.43 billion from a deficit of AUD2.79 billion the previous month.
Analysts had expected the trade deficit to narrow to AUD0.80 billion in December.
Later in the day, the U.S. Institute of Supply Management was to publish a report on service sector activity.
NZD/USD hit 0.8412 during late Asian trade, the pair's lowest since February 1; the pair subsequently consolidated at 0.8432, inching down 0.03%.
The pair was likely to find support at 0.8396, the low of February 1 and resistance at 0.8471, the high of February 4.
Fresh political uncertainty in Spain and Italy revived fears over the debt crisis in the region, pushing peripheral borrowing costs higher.
Spanish Prime Minister Mariano Rajoy faced calls to step down following allegations of corruption against him and senior officials in the ruling Popular Party, while uncertainty over the outcome of upcoming Italian elections mounted as former Prime Minister Silvio Berlusconi gained ground in opinion polls.
The kiwi was higher against the Australian dollar with AUD/NZD falling 0.17%, to hit 1.2355.
Also Tuesday, in a widely expected move, the Reserve Bank of Australia left its benchmark interest rate unchanged at 3%, but said that it could cut rates to a record low in the future, as the weak labor market contninues to contain inflation.
Separately, official data showed that Australia's trade deficit narrowed more-than-expected in December, improving to AUD0.43 billion from a deficit of AUD2.79 billion the previous month.
Analysts had expected the trade deficit to narrow to AUD0.80 billion in December.
Later in the day, the U.S. Institute of Supply Management was to publish a report on service sector activity.