Forexpros – The New Zealand dollar was down against its U.S. counterpart on Monday, falling to a four week low as ongoing concerns over a possible sovereign debt default by Greece saw investors shun riskier assets.
NZD/USD hit 0.8131 during late Asian trade, the pair’s lowest since August 11; the pair subsequently consolidated at 0.8133, falling 1.04%.
The pair was likely to find support at 0.8062, the low of August 10 and resistance at 0.8216, the days high.
Concerns over a possible default by Greece mounted following media reports that Germany’s government has plans to insulate their country’s banking sector in case of a default.
Later in the day, German Chancellor Angela Merkel was to hold talks on the debt crisis with European Commission President Jose Manuel Barroso.
Elsewhere, New Zealand’s Finance Minister Bill English said earlier that the high New Zealand dollar and the European debt crisis were risks for the country’s economy. English also noted that the high New Zealand dollar could become even more of a headwind for the economy if commodity prices were to fall back significantly.
Meanwhile, the kiwi was higher against its Australian cousin, with AUD/USD shedding 0.60% to hit 1.2658.
Also Monday, official data showed that Australia’s trade surplus expanded less-than-expected in July as exports exceeded imports by AUD1.83 billion, compared with a revised AUD1.82 billion surplus the previous month.
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