Forexpros – The New Zealand dollar edged higher against its U.S. counterpart on Tuesday, easing off an eight-month low but the kiwi remained vulnerable amid sustained debt concerns in the euro zone and in the U.S.
NZD/USD hit 0.7498 during late Asian trade, the daily high; the pair subsequently consolidated at 0.7499, rising 0.39%.
The pair was likely to find support at 0.7336, the low of March 22 and resistance at 0.7575, Monday’s high.
Market sentiment slightly lifted after Greek Finance Minister Evangelos Venizelos said that euro zone officials would make a decision regarding the next tranche of Greek aid as soon as November 29.
In the U.S., a congressional “super committee” failed to forge a deficit reduction deal and called for Congress to work out an agreement before painful automatic budget cuts take place in 2013.
Ratings agency Fitch said that a failure to reach an agreement was likely to result in a revision of the rating outlook to “negative,” rather than a downgrade.
Earlier Tuesday, the Reserve Bank of Australia said that inflation expectations for the fourth quarter ticked down to 2.8%, after a reading at 2.9% the previous quarter.
Elsewhere, the kiwi was up against the euro with EUR/NZD slipping 0.14%, to hit 1.8032.
Later in the day, the U.S. was to release preliminary data on gross domestic product, while the U.S. Federal Reserve was to publish the minutes of its November policy meeting.
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