Forexpros – The New Zealand dollar was down against its U.S. counterpart on Tuesday, as uncertainty over the outcome of Wednesday’s European summit on the region’s debt crisis saw investors shun riskier assets.
NZD/USD hit 0.8023 during late Asian trade, the daily low; the pair subsequently consolidated at 0.8053, shedding 0.26%.
The pair was likely to find support at 0.7898, the low of October 21 and resistance 0.8122, the high of June 28.
European leaders neared a deal over the weekend on bank recapitalization, while France and Germany seemed closer to an agreement on a potential enhancement of the euro zone’s bailout fund. But divisions remained over ways to restructure Greece’s sovereign debt.
Meanwhile, official data showed that New Zealand consumer price inflation fell more-than-expected in the third quarter, dropping to 0.4% from 1.0% the previous quarter.
Analysts had expected consumer price inflation to fall to 0.7% in the third quarter.
The kiwi was also lower against the Australian dollar with AUD/NZD rising 0.40%, to hit 1.3025.
Later in the day, the U.S. was to publish industry data on house price inflation as well as a report on consumer confidence.
Forexpros
