Investing.com – The New Zealand dollar tumbled against its U.S. counterpart on Thursday, falling to a three-day low after the Reserve Bank of New Zealand kept its benchmark interest rate unchanged and indicated that rates may remain on hold in the coming months.
NZD/USD hit 0.8122 during late Asian trade, the pair’s lowest since Monday; the pair subsequently consolidated at 0.8148, tumbling 1.02%.
The pair was likely to find support at 0.8073, the low of August 11 and resistance at 0.8264, Wednesday’s high.
Speaking after the RBNZ left interest rates on hold at 2.5%, central bank Governor Alan Bollard said there was now greater risk that global economic activity could slow “sharply,” and he wants to be sure that this will not occur before looking at a rate increase.
In March, the central bank cut interest rates by 0.5% to offset the impact of the massive earthquake which struck the south island city of Christchurch.
Concerns over the ongoing debt crisis in the euro zone also weighed on risk appetite, as investors eyed a Spanish debt auction later in the day and as speculation mounted over a possible downgrade of Italy’s sovereign debt rating.
The kiwi was also lower against its Australian cousin, with AUD/NZD rising 0.33% to hit 1.2530.
Later Thursday, the U.S. was to publish a string of data, with government reports on consumer price inflation, as well as the weekly report on initial jobless claims. The country was also to publish official data on manufacturing activity in New York and Philadelphia.
NZD/USD hit 0.8122 during late Asian trade, the pair’s lowest since Monday; the pair subsequently consolidated at 0.8148, tumbling 1.02%.
The pair was likely to find support at 0.8073, the low of August 11 and resistance at 0.8264, Wednesday’s high.
Speaking after the RBNZ left interest rates on hold at 2.5%, central bank Governor Alan Bollard said there was now greater risk that global economic activity could slow “sharply,” and he wants to be sure that this will not occur before looking at a rate increase.
In March, the central bank cut interest rates by 0.5% to offset the impact of the massive earthquake which struck the south island city of Christchurch.
Concerns over the ongoing debt crisis in the euro zone also weighed on risk appetite, as investors eyed a Spanish debt auction later in the day and as speculation mounted over a possible downgrade of Italy’s sovereign debt rating.
The kiwi was also lower against its Australian cousin, with AUD/NZD rising 0.33% to hit 1.2530.
Later Thursday, the U.S. was to publish a string of data, with government reports on consumer price inflation, as well as the weekly report on initial jobless claims. The country was also to publish official data on manufacturing activity in New York and Philadelphia.