Forexpros – The New Zealand dollar slipped against its U.S. counterpart on Wednesday as concerns over the outcome of political turmoil in Italy and Greece dented risk appetite.
NZD/USD hit 0.7940 during late Asian trade, the daily low; the pair subsequently consolidated at 0.7940, dipping 0.55%.
The pair was likely to find support at 0.7859, the low of October 18 and resistance at 0.8077, the high of October 25.
Market sentiment found support earlier, after Italian Prime Minister Silvio Berlusconi said he would resign after a key budget vote resulted in his loss of the parliamentary majority.
But investors remained cautious as yields on Italian ten-year bonds were hovering above 6.7%, creeping up to levels seen as unsustainable, and amid uncertainty over whether Italy’s new government will be able to implement austerity measures.
In Greece, officials were still struggling to form a new coalition government as the country is scrambling to win emergency funds to avoid potential bankruptcy.
Elsewhere, the kiwi was up against the Australian dollar with AUD/NZD inching down 0.06%, to trade at 1.3010.
Also Wednesday, government data showed that China’s annualized rate of consumer price inflation came in broadly in line with expectations in October, slowing to 5.5%, after a 6.1% the previous month, easing fears over monetary tightening by Beijing.
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