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Forex - NZD/USD tumbles to 9-day low after Key remarks

Published 11/15/2010, 06:26 AM
NZD/USD
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EUR/NZD
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Investing.com – New Zealand’s dollar was down against its U.S. counterpart on Monday, after New Zealand’s prime minister said that the country’s currency was overvalued against the U.S. dollar.

NZD/USD hit 0.7684 during European morning trade, the pair’s lowest since November 2; the pair subsequently consolidated at 0.7715, shedding 0.22%.

The pair was likely to find support at 0.7633, the low of November 2 and resistance at 0.7810, last Friday’s high.

Earlier in the day, New Zealand’s Prime Minister John Key said the country’s dollar was too strong relative to the greenback and that was harming exports.

“There is no question that for those who are exporting in U.S. dollars that are not commodity-linked, it’s very difficult to combat the U.S.-New Zealand exchange rate, which is overvalued,” Key said.

Meanwhile, the kiwi was up against the euro, with EUR/NZD shedding 0.33% to hit 1.7649.

Also Monday, official data showed that New Zealand retail sales rose more-than-expected in September.

In a report, Statistics New Zealand said that both total and core retail sales - which excludes the four vehicle-related industries - rose 1.6% in September. Both had been expected to rise 1.1% in September.

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