Investing.com – New Zealand’s dollar snapped seven-days of gains against its U.S. counterpart on Monday, falling to a daily low after Prime Minster John Key said the nation may post a record budget deficit because of costs arising from last month’s earthquake.
NZD/USD hit 0.7491 during early European trade, a daily low; the pair subsequently consolidated at 0.7506, shedding 0.36%.
The pair was likely to find support at 0.7421, the low of March 24 and short-term resistance at 0.7574, Friday’s high.
Earlier in the day, New Zealand PM Key said the country faced the “biggest budget deficit in history as I understand it” due to the quake that struck Christchurch in late February.
Last week, the country’s finance minister Bill English said that the budget operating deficit may widen to more than NZD16 billion, exceeding 8% of gross domestic product, compared to NZD11.1 billion, or 5.5% forecast in December.
The 6.3 magnitude temblor prompted the nation’s central bank to cut interest rates on March 10 to a record low 2.5%.
Elsewhere, the kiwi was also down against the euro, with EUR/NZD climbing 0.24% to hit 1.8744.
Later in the day, the U.S. was to release industry data on pending home sales as well as official data on personal spending, personal income and personal consumption expenditures.
NZD/USD hit 0.7491 during early European trade, a daily low; the pair subsequently consolidated at 0.7506, shedding 0.36%.
The pair was likely to find support at 0.7421, the low of March 24 and short-term resistance at 0.7574, Friday’s high.
Earlier in the day, New Zealand PM Key said the country faced the “biggest budget deficit in history as I understand it” due to the quake that struck Christchurch in late February.
Last week, the country’s finance minister Bill English said that the budget operating deficit may widen to more than NZD16 billion, exceeding 8% of gross domestic product, compared to NZD11.1 billion, or 5.5% forecast in December.
The 6.3 magnitude temblor prompted the nation’s central bank to cut interest rates on March 10 to a record low 2.5%.
Elsewhere, the kiwi was also down against the euro, with EUR/NZD climbing 0.24% to hit 1.8744.
Later in the day, the U.S. was to release industry data on pending home sales as well as official data on personal spending, personal income and personal consumption expenditures.