Forex - NZD/USD down as euro debt fears sap risk appetite

Forex Pros – The New Zealand dollar fell to a seven-day low against its U.S. counterpart on Monday, as uncertainty over possible euro zone sovereign debt restructuring dimmed investors' appetites for growth linked currencies.

NZD/USD hit 0.7828 during late Asian trade, the pair’s lowest since May 5; the pair subsequently consolidated at 0.7850, shedding 0.27%.

The pair was likely to find support at 0.7744, the low of April 12 and resistance at 0.7964, last Friday’s high.

Euro zone finance ministers were to meet later in the day to discuss further support for Greece which is struggling to meet the terms of a EUR110 billion European Union/IMF bailout last year.

Earlier Monday, the Bank of New Zealand and Business New Zealand, a Wellington-based employer group, said their performance of services index rose to 52.6 in April from 51.1 the previous month. A reading above 50 indicates expansion.

The kiwi was also lower against its Australian cousin, with AUD/NZD rising 0.33% to hit 1.3470.

Later in the day, the U.S. was to publish official data on manufacturing activity in New York state, while Federal Reserve Chairman Ben Bernanke was to speak.