Forexpros – The New Zealand dollar tumbled against its U.S. counterpart on Monday, as ongoing concerns over the debt crisis in the euro zone curbed investor demand for riskier assets.
NZD/USD hit 0.8212 during late Asian trade, the daily low; the pair subsequently consolidated at 0.8236, falling 0.65%.
The pair was likely to find support at 0.8119, last Thursday’s low and an almost one-month low and resistance at 0.8340, Friday’s high and a one-week high.
Risk appetite was hit after a meeting of European finance ministers over the weekend failed to make headway on dealing with the debt crisis in the euro zone.
Ministers postponed a decision to release the next tranche of aid to the debt-laden country until next month and warned they may withhold the aid if Athens fails to meet deficit reduction targets.
Also Monday, a report showed that the Westpac index of consumer sentiment in New Zealand was unchanged at 112 in the September quarter, as consumers remained upbeat, but long term confidence has dropped off.
Meanwhile, the kiwi was higher against its Australian cousin, with AUD/NZD shedding 0.47% to hit 1.2436.
The Australian dollar was weighed by speculation over a possible rate cut by the country’s central bank, ahead of the release of minutes from this month’s policy-setting meeting on Tuesday.
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