Forexpros – The New Zealand dollar edged lower against its U.S. counterpart on Wednesday, hitting an eight-month low as risk sentiment was hit amid fears that France may lose its triple A credit rating and after disappointing China manufacturing data.
NZD/USD hit 0.7420 during late Asian trade, the pair’s lowest since March 24; the pair subsequently consolidated at 0.7452, shedding 0.28%.
The pair was likely to find support at 0.7292, the low of March 21 and resistance at 0.7575, the high of November 21.
Risk sentiment was hit following reports saying that Belgium and France were in fresh talks over an existing rescue deal for Dexia, stirring worries about the potential for an increased fiscal burden on France, which could have implications for France’s AAA credit rating.
Investors were also wary after China’s November HSBC preliminary manufacturing purchasing managers’ index fell to a 32-month low of 48.0, dropping below the 50-point level that denotes a contraction, as new orders slumped.
Elsewhere, the kiwi was up against the Australian dollar with AUD/NZD declining 0.46%, to trade at 1.3010.
Later in the day, the U.S. was to publish a string of economic data ahead of Thursday’s Thanksgiving holiday, including a government report on durable goods orders, the weekly report on initial jobless claims as well as data on crude oil stockpiles, inflation, personal income and personal spending.
Meanwhile, the University of Michigan was to release revised data on inflation
expectations and consumer sentiment.
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