Forexpros – The New Zealand dollar tumbled to a six-week low against its U.S. counterpart on Wednesday, as ongoing concerns over the debt crisis in the euro zone weighed on demand for riskier assets.
NZD/USD hit 0.7628 during late Asian trade, the pair’s lowest since October 5; the pair subsequently consolidated at 0.7690, shedding 0.29%.
The pair was likely to find support at 0.7552, the low of October 5 and resistance at 0.7796, the high of October 7.
Italian 10-year bond yields rose to near unsustainable levels on Tuesday, above 7%, sparking new fears over the country’s worsening financial crisis.
On Wednesday, Italian Prime Minister-designate Mario Monti was to meet with President Giorgio Napolitano to officially accept the post and possibly present his ministers.
Meanwhile, Greek Prime Minister Lucas Papademos was facing a confidence vote in parliament, which will give him a three-month mandate to implement budget measures and ensure a bailout package.
Markets were also eyeing Spanish and French bond auctions to take place later Wednesday and on Thursday, after yields on French 10-year bonds rose to euro-era highs on Tuesday.
The kiwi was up against the Australian dollar with AUU/NZD declining 0.09%, to trade at 1.3183.
Later in the day, the U.S. was to release official data on consumer price inflation and industrial production.
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