Forexpros – The New Zealand dollar erased losses against its U.S. counterpart on Wednesday, rebounding from a daily low, boosted by reports that European Union finance officials were looking at a bank recapitalization plan.
NZD/USD rebounded from 0.7554, the daily low, to hit 0.7624 during late Asian trade, rising 0.30%.
The pair was likely to find support at 0.7523, Monday’s low and a seven-month low and resistance at 0.7709, September 30.
Market sentiment firmed up after a report in the Financial Times said that E.U. finance ministers are looking into ways to coordinate the recapitalization of European lenders after agreeing that additional measures are needed support the region’s banks.
But concerns over a default by Greece lingered after a decision on the country’s next tranche of aid was delayed until mid-November. Elsewhere in the euro zone, ratings agency Moody’s lowered Italy’s rating three levels to A2 from Aa2, with a negative outlook.
The kiwi was also higher against its Australian cousin, with AUD/NZD shedding 0.29% to hit 1.2549.
Earlier Wednesday, the Australian Bureau of Statistics said retail sales rose 0.6% in August after rising by an upwardly revised 0.6% the previous month, outstripping expectations for a 0.2% gain.
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