Forexpros – The New Zealand dollar was lower against its U.S. counterpart on Tuesday, trading close to a four-month low as Sunday’s elections in Greece and France continued to worry investors over the handling of the sovereign debt crisis in the euro zone.
NZD/USD hit 0.7924 during late Asian trade, the daily low; the pair subsequently consolidated at 0.7919, declining 0.34%.
The pair was likely to find support at 0.7864, the low of January 10 and resistance at 0.7979, the high of January 12.
Investors remained cautious after weekend election results in Greece and France raised doubts over Europe’s ability implement austerity measures deemed necessary to tackle the debt crisis in the region.
Initial attempts to form a government in Greece failed on Monday, fanning fears that the country may not have a government in place in time to secure its next tranche of international aid next month.
Market participants were also watching developments in France, where Socialist Francois Hollande is to be inaugurated on May 15. Hollande has said he wants to renegotiate the euro zone fiscal pact in order to stimulate growth in the region.
The kiwi was steady against the Australian dollar with AUD/NZD edging 0.06% higher, to hit 1.2840.
Also Tuesday, official data showed that Australia’s trade deficit more than doubled in March, widening to AUD1.59 billion from a deficit of AUD0.75 billion the previous month.
Analysts had expected Australia’s trade deficit to widen to AUD1.38 billion in March.
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