Forexpros – The New Zealand dollar dropped to an almost six-month low on Monday, as renewed concerns over the euro zone debt crisis weighed on market sentiment, prompting demand for safer assets.
NZD/USD hit 0.7638 during late Asian trade, the pair’s lowest since April 1; the pair subsequently consolidated at 0.7676, plummeting 1.05%.
The pair was likely to find support at 0.7492, the low of March 29 and resistance at 0.7868, the high of May 16.
Risk appetite was dampened after weekend meetings of leaders from the G-20 nations and the International Monetary Fund resulted in no fresh steps to tackle the debt crisis in the single currency bloc.
Meanwhile, German deputy Finance minister Joerg Asmussen said, on Sunday that Greece will probably have to wait beyond a key meeting early next month for a decision on an urgently needed bailout.
Earlier in the day, official data showed that New Zealand’s trade balance swung into a deficit of NZD641 million in August, from a downwardly revised surplus of NZD111 million the previous month.
Analysts had expected a trade deficit of NZD315 million in August.
Elsewhere, the kiwi was up against the Australian dollar with AUD/NZD declining 0.09%, to trade at 1.2590.
Later in the day, a U.S. report on new home sales was to be published.
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