Forexpros – The New Zealand dollar edged lower against its U.S. counterpart on Thursday, as investors remained concerned over a possible series of downgrades in the euro zone.
NZD/USD hit 0.7462 during late Asian trade, the pair’s lowest since November 25; the pair subsequently consolidated at 0.7484, shedding 0.26%.
The pair was likely to find support at 0.7391, the low of November 24 and resistance at 0.7577, Wednesday’s high.
Market sentiment has weakened in recent days on the view that last week’s European Union summit did not result in a decisive plan to resolve the debt crisis in the region.
Investors were also concerned after Italy’s Treasury sold EUR3 billion of five-year government bonds on Wednesday, at an average yield of 6.47%, a euro era high, after paying 6.29% at a similar auction in November.
Elsewhere, the kiwi was lower against the Australian dollar with AUD/NZD adding 0.15%, to hit 1.3226.
Earlier Thursday, Australia’s Melbourne Institute said that its inflation expectations slightly eased to 2.4% in December, while a separate report showed that new motor vehicle sales in Australia fell 0.7% in November after a 1% increase the previous month.
Later in the day, The U.S. was to produce its weekly report on initial jobless claims, as well as government data on producer price inflation and manufacturing activity in Philadelphia and New York State.
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