Investing.com – The New Zealand dollar tumbled against its U.S. counterpart on Tuesday, erasing Monday’s gains amid mounting concern that the euro zone sovereign debt crisis will spread to the region’s banking system.
NZD/USD hit 0.6714 during European late morning trade, shedding 1.35%. The pair was likely to find support at 0.656, last Tuesday’s low and a 10-month low, and resistance at 0.6903, the high of May 19.
Earlier in the day, the European Central Bank warned euro zone banks faced up to EUR 195 billion in a "second wave" of potential loan losses triggering a fresh wave of risk aversion.
The kiwi hit a 3-day low against the yen, meanwhile, with NZD/JPY shedding 1.68% to hit 61.08.
Later in the day, an industry group, the Institute for Supply Management, was scheduled to publish an important report on the U.S. manufacturing sector based on a survey of purchasing managers.
NZD/USD hit 0.6714 during European late morning trade, shedding 1.35%. The pair was likely to find support at 0.656, last Tuesday’s low and a 10-month low, and resistance at 0.6903, the high of May 19.
Earlier in the day, the European Central Bank warned euro zone banks faced up to EUR 195 billion in a "second wave" of potential loan losses triggering a fresh wave of risk aversion.
The kiwi hit a 3-day low against the yen, meanwhile, with NZD/JPY shedding 1.68% to hit 61.08.
Later in the day, an industry group, the Institute for Supply Management, was scheduled to publish an important report on the U.S. manufacturing sector based on a survey of purchasing managers.