Forexpros – The New Zealand dollar slipped lower against its U.S. counterpart on Tuesday, as risk sentiment weakened amid Italy’s deepening political turmoil ahead of a key parliamentary vote.
NZD/USD hit 0.7924 during late Asian trade, the daily low; the pair subsequently consolidated at 0.7950, shedding 0.25%.
The pair was likely to find support at 0.7804, the low of November 3 and resistance at 0.8077, the high of October 25.
Investors were jittery ahead of a vote in Italy on public finances amid growing pressure for Prime Minister Silvio Berlusconi to step down and allow a new government to steer the country out of the euro zone’s debt crisis.
On Monday, Mr. Berlusconi denied reports that he was planning to resign and said he was convinced his government was going to survive.
Meanwhile, Greece was to announce the new head of an interim government amid ongoing efforts to avoid a potential default.
The kiwi was up against the Australian dollar with AUD/NZD declining 0.46%, to trade at 1.2964.
Also Tuesday, official data showed that the Australia’s trade surplus expanded less-than-expected in September to AUD2.56 billion.
A separate report showed that Australian business confidence ticked higher in October.
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