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Forex - NZD/USD higher, euro zone worries remain

Published 06/12/2012, 02:56 AM
NZD/USD
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EUR/NZD
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Investing.com - The New Zealand dollar was higher against its U.S. counterpart on Tuesday, after positive New Zealand house price data, but the kiwi remained under pressure as optimism linked to Spain’s financial bailout continued to wane.

NZD/USD hit 0.7728 during late Asian trade, the daily high; the pair subsequently consolidated at 0.7718, rising 0.36%.

The pair was likely to find support at 0.7621, the low of May 17 and resistance at 0.7785, Monday’s high.

Industry data showed earlier that house prices in New Zealand rose 1.7% in May, following a 0.3% decline the previous month.

Meanwhile, market sentiment remained vulnerable as the exact amount Spain is to receive to recapitalize its banks will only be decided later this month, after the results of independent audits are published. In addition, questions remained over the source of the funds and whether the bailout repayments would add to the country’s already high borrowing costs.

Uncertainty over the outcome of a Greek general election on June 17, which could determine the course of the country’s future in the euro zone, also weighed.

Parties that support and oppose Greece's international bailout, and the harsh austerity measures accompanying it, remained neck-and-neck in the latest opinion polls.

Elsewhere, the kiwi was higher against the euro with EUR/NZD shedding 0.33%, to hit 1.6178.

Later in the day, the U.S. was to publish official data on import prices as well as a government report on federal budget balance.


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