Forexpros — The New Zealand dollar was lower against its U.S. counterpart on Tuesday, pulling away from an eight-day high ahead of a vote by Slovakia on expanding the power of the euro zone’s bailout fund.
NZD/USD hit 0.7798 during early European trade, the daily low; the pair subsequently consolidated at 0.7805, easing down 0.42%.
The pair was likely to find support at 0.7676, Monday’s low and resistance at 0.7956, the high of September 27.
Later in the day, Slovakia was to be the last country to vote on a bill to expand the powers of the region’s EUR440 billion bailout fund, the European Financial Stability Facility.
Officials from the European Union, the International Monetary Fund and the European Central Bank were also due to decide, later Tuesday whether Greece is to receive its next tranche of financial aid.
Demand for riskier assets was boosted on Monday, after France and Germany pledged action on the euro zone debt crisis before the end of the month, including a plan to recapitalize European banks.
Elsewhere, the kiwi was higher against the Australian dollar with AUD/NZD slipping 0.17%, to hit 1.2720.
Also Tuesday, the National Australia Bank said that its business confidence index rose to a reading of minus 2 in September, from a downwardly revised minus 9 the previous month.
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