Forexpros – The New Zealand dollar dropped to a one-month low against its U.S. counterpart on Tuesday, as risk sentiment waned amid sustained concerns over Greece’s financial crisis and the economic outlook in the euro zone.
NZD/USD hit 0.8134 during late Asian trade, the pair’s lowest since January 25; the pair subsequently consolidated at 0.8156, declining 0.60%.
The pair was likely to find support at 0.8060, the low of October 31 and resistance at 0.8249, the high of January 27.
China’s lowering of its growth target and data pointing to the euro zone possibly slipping back into recession weakened investor confidence on Monday.
Data showed that the euro zone’s services sector contracted at a faster rate than initially estimated in February, shrinking for the fifth time in six months, while investor confidence improved less-than-expected this month, remaining in negative territory for the eighth consecutive month.
Meanwhile, investors were also cautious ahead of the March 8 deadline for Greek bondholders to join the agreement under which they will exchange their existing Greek government bonds for new paper in a swap deal.
The kiwi was lower against the Australian dollar with AUD/NZD adding 0.13%, to hit 1.3016.
Also Tuesday, the Reserve bank of Australia held its benchmark interest rate at 4.25%, citing the stabilization of the euro zone’s debt crisis and signs of stronger U.S. growth.
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