Forexpros – The New Zealand dollar was lower against its U.S. counterpart on Monday, as sustained concerns over Spain’s financial crisis and the outlook for global economic growth weighed on market sentiment.
NZD/USD hit 0.8191 during late Asian trade, the pair’s lowest since April 12; the pair subsequently consolidated at 0.8194, declining 0.43%.
The pair was likely to find support at 0.8138, the low of April 11 and resistance at 0.8286, the high of March 19.
The risk-related kiwi was hit after Spain’s government bond yields rose and the cost of insuring its debt hit an all-time high on Friday, as record borrowing by its banks from the European Central Bank highlighted fears about the country’s finances before it tests market appetite for its debt on Thursday.
Data showed Spanish banks borrowed a record EUR316.3 billion from the ECB in March, almost double the previous month’s total.
Meanwhile, sentiment also weakened after official data showed that the Chinese economy grew at the slowest pace in almost three years in the first quarter, fuelling concerns over a slowdown in global growth.
Elsewhere, the kiwi was higher against the Australian dollar with AUD/NZD edging down 0.04%, to hit 1.2599.
Later in the day, the U.S. was to release government data on retail sales and a report on manufacturing activity in New York, as well as official data on net long-term securities transactions and business inventories.
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