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Forex - NZD/USD tumbles to 2-month low after Christchurch quake

Published 02/22/2011, 03:12 AM
NZD/USD
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EUR/NZD
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Investing.com – The New Zealand dollar tumbled to a two-month low against its U.S. counterpart on Tuesday, after an earthquake rocked the country’s second largest city, Christchurch.

NZD/USD hit 0.7485 during late Asian trade, the pair’s lowest since December 27, 2010; the pair subsequently consolidated at 0.7497, tumbling 1.84%.

The pair was likely to find support at 0.7454, the low of December 27 and resistance at 0.7651, Monday’s high.

Earlier Tuesday, a magnitude 6.3 earthquake caused multiple deaths and toppled buildings in Christchurch.

The earthquake, which followed a quake in September that was the worst in 80 years, prompted speculation the country's central bank may soon lower interest rates.

Meanwhile, In Libya, scores of anti-government protesters were killed on Monday as the government attacked demonstrators and rebels claimed control of the nation’s second largest city, Benghazi.

The kiwi was also down against the euro, with EUR/NZD rising 0.97% to hit 1.8081.

Later in the day, the U.S. was to publish data on consumer confidence compiled by the Conference Board as well as industry data on house prices and a report on manufacturing activity in Richmond.


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