Forexpros – The New Zealand dollar fell to a seven-week low against its U.S. counterpart on Monday, as risk sentiment was hit amid ongoing concerns over the financial crisis in the euro zone.
NZD/USD 0.7528 during late Asian trade, the pair’s lowest since October 4; the pair subsequently consolidated at 0.7536, shedding 0.37%.
The pair was likely to find support at 0.7467, the low of October 4 and resistance at 0.7648, the high of November 18.
Spain’s center-right opposition People’s Party won a crushing election victory on Sunday, and was expected to push through drastic austerity measures to try shore up the country’s economy.
But investors remained uncertain over the ability of policymakers to bring down the borrowing costs of many euro-zone governments from current elevated levels.
Meanwhile, a U.S. congressional “super committee” was expected to formally announce on Monday the failure of its three-month-long effort to forge a USD1.2 trillion deficit reduction plan.
Earlier Monday, government data showed that Japan’s exports fell in October at the fastest pace in five months, underscoring mounting concerns that sputtering global growth and a strong yen will take their toll on the country’s economy.
Japan is New-Zealand’s second biggest export partner.
Elsewhere, the kiwi was higher against the Australian dollar with AUD/NZD falling 0.39%, to trade at 1.3177.
Later in the day, the U.S. was to release industry data on existing home sales.
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