Investing.com - The New Zealand dollar tumbled to a five-month low against its U.S. counterpart on Wednesday, as market sentiment remained under heavy pressure after Greek political leaders failed to agree on a coalition government, threatening the country’s access to international aid.
NZD/USD hit 0.7648 during late Asian trade, the pair’s lowest since December 20; the pair subsequently consolidated at 0.7650, declining 0.55%.
The pair was likely to find support at 0.7609, the low of December 12 and resistance at 0.7715, the high of December 20.
Sentiment was hit after Greek political leaders announced Tuesday that cross party talks had failed to reach an agreement to form a government, following a May 6 election which left no party with a clear majority.
Greek politicians were to meet later Wednesday to appoint a caretaker government to lead the country until fresh elections can be held in June.
Uncertainty over the outcome of the next elections fueled speculation that the country will not be able to access further financial aid and may eventually be forced out of the euro zone.
Elsewhere, the kiwi was fractionally lower against the Australian dollar with AUD/NZD edging up 0.09%, to hit 1.2926.
Also Wednesday, the Westpac Banking Corporation said that consumer sentiment in Australia rose 0.8% to 95.3 in May, hovering close to the weakest level this year and following a 1.6% fall the previous month.
A separate report showed that Australian wages rose 0.9% in the first quarter, in line with expectations, after a 1% rise the previous quarter.
Later in the day, the U.S. was to produce official data on building permits and housing starts, followed by reports on the capacity utilization rate and industrial production. In addition, the Federal Reserve was to publish the minutes of its most recent policy meeting.
NZD/USD hit 0.7648 during late Asian trade, the pair’s lowest since December 20; the pair subsequently consolidated at 0.7650, declining 0.55%.
The pair was likely to find support at 0.7609, the low of December 12 and resistance at 0.7715, the high of December 20.
Sentiment was hit after Greek political leaders announced Tuesday that cross party talks had failed to reach an agreement to form a government, following a May 6 election which left no party with a clear majority.
Greek politicians were to meet later Wednesday to appoint a caretaker government to lead the country until fresh elections can be held in June.
Uncertainty over the outcome of the next elections fueled speculation that the country will not be able to access further financial aid and may eventually be forced out of the euro zone.
Elsewhere, the kiwi was fractionally lower against the Australian dollar with AUD/NZD edging up 0.09%, to hit 1.2926.
Also Wednesday, the Westpac Banking Corporation said that consumer sentiment in Australia rose 0.8% to 95.3 in May, hovering close to the weakest level this year and following a 1.6% fall the previous month.
A separate report showed that Australian wages rose 0.9% in the first quarter, in line with expectations, after a 1% rise the previous quarter.
Later in the day, the U.S. was to produce official data on building permits and housing starts, followed by reports on the capacity utilization rate and industrial production. In addition, the Federal Reserve was to publish the minutes of its most recent policy meeting.