Forexpros – The New Zealand dollar edged lower against its U.S. counterpart on Monday, as uncertainty over the outcome of Greek and Italian political woes weighed on risk sentiment.
NZD/USD hit 0.7926 during late Asian trade, the daily low; the pair subsequently consolidated at 0.7926, shedding 0.14%.
The pair was likely to find support at 0.7804, the low of November 3 and resistance at 0.8077, the high of October 25.
Investors remained jittery after Greek Prime Minister George Papandreou stepped down on Sunday, in order to allow the creation of a national unity government intended to secure international financing and avert a potential default.
Papandreou had come under intense criticism last week after calling for a referendum on Athens’ latest bailout program, placing Greece at the center of the Group of 20 talks in Cannes last week.
Meanwhile, risk sentiment was also hit ahead of an Italian parliamentary vote on Tuesday, as Prime Minister Silvio Berlusconi faced growing opposition from within his own political party after agreeing to allow the International Monetary Fund to monitor the country’s progress on cutting its deficit and implement economic reforms, last week.
The kiwi was higher against the Australian dollar with AUD/NZD declining 0.51%, to trade at 1.2997.
Also Monday, data showed that Australia job advertisements decreased by 0.7% in October, marking the sixth fall in seven months.
Forexpros
