Investing.com - The New Zealand dollar rose to a two-day high against its U.S. counterpart on Tuesday, but gains were limited as hopes for progress at this week’s European summit in Brussels faded as concerns over the worsening of the region’s debt crisis persisted.
NZD/USD hit 0.7903 during late Asian trade, the pair’s highest since June 22; the pair subsequently consolidated at 0.7897, rising 0.30%.
The pair was likely to find support at 0.7828, the low of May 10 and resistance at 0.7972, the high of May 8.
The risk-related kiwi remained under pressure after German Chancellor Angela Merkel crushed any hopes that euro zone countries will eventually issue common Eurobonds to help indebted nations, calling such an idea “economically wrong” and “counterproductive”.
Meanwhile, Greece’s new finance minister was forced to resign on Monday, due to health issues, while Prime Minister Antonis Samaras said he would not be able to attend this week’s EU summit given that he had just undergone eye surgery.
Sentiment was also under pressure after Moody’s ratings agency downgraded 28 Spanish banks late Monday, citing exposure to the ailing real estate market. The decision came after Spain formally requested up to EUR100 billion in rescue loans to recapitalize its struggling banks.
In addition, Cyprus became the fifth euro zone country to request financial help from Brussels, adding to concerns over the level of debt contagion in the single currency bloc.
Elsewhere, the kiwi was steady against the Australian dollar with AUD/NZD inching down 0.06%, to hit 1.2704.
Later in the day, the U.S. was to release industry data on house price inflation, followed by a report on consumer confidence.
NZD/USD hit 0.7903 during late Asian trade, the pair’s highest since June 22; the pair subsequently consolidated at 0.7897, rising 0.30%.
The pair was likely to find support at 0.7828, the low of May 10 and resistance at 0.7972, the high of May 8.
The risk-related kiwi remained under pressure after German Chancellor Angela Merkel crushed any hopes that euro zone countries will eventually issue common Eurobonds to help indebted nations, calling such an idea “economically wrong” and “counterproductive”.
Meanwhile, Greece’s new finance minister was forced to resign on Monday, due to health issues, while Prime Minister Antonis Samaras said he would not be able to attend this week’s EU summit given that he had just undergone eye surgery.
Sentiment was also under pressure after Moody’s ratings agency downgraded 28 Spanish banks late Monday, citing exposure to the ailing real estate market. The decision came after Spain formally requested up to EUR100 billion in rescue loans to recapitalize its struggling banks.
In addition, Cyprus became the fifth euro zone country to request financial help from Brussels, adding to concerns over the level of debt contagion in the single currency bloc.
Elsewhere, the kiwi was steady against the Australian dollar with AUD/NZD inching down 0.06%, to hit 1.2704.
Later in the day, the U.S. was to release industry data on house price inflation, followed by a report on consumer confidence.