Forexpros – The New Zealand dollar was lower against its U.S. counterpart on Tuesday, slipping to a daily low as fears over the deepening sovereign debt crisis in the euro zone saw investors shun riskier assets.
NZD/USD hit 0.8200 during late Asian trade, the daily low; the pair subsequently consolidated at 0.8224, slipping 0.06%.
The pair was likely to find support at 0.8117, Monday’s low and a one-month low and resistance at 0.8370, last Friday’s high.
The New Zealand dollar briefly touched a two-day high earlier, after a report in the Financial Times said China would support Italy by buying “significant” amounts of Italian government bonds.
Italian borrowing costs have risen significantly in recent weeks, amid uncertainty over the implementation of austerity measures.
But the kiwi resumed its decline as growing fears over a potential Greek default and ongoing worries about the European banking system saw investors seek out traditional safe haven assets.
Meanwhile, the kiwi was slightly higher against its Australian cousin, with AUD/NZD slipping 0.10% to hit 1.2552.
Earlier Tuesday, a report showed that Australian business confidence fell to the lowest level since April 2009 last month, as increased global uncertainty and concerns over the euro zone debt crisis weighed on sentiment.
National Australia Bank said its index of business confidence fell to minus 8 in August from 2 in July.
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