RTTN:New Zealand Dollar Falls On Fresh Eurozone Worries
(RTTNews) - The New Zealand dollar declined against other major currencies in early Asian trading on Tuesday amid renewed worries about the Eurozone debt crisis due to uncertainty on the political front and on rising Italian bond yields.
The results of an Italian bond auction disappointed traders, with Italy paying a record high yield of 6.29 percent on the five-year notes. With the auction, Italy raised 3 billion euros. The bond auction came amid news that former European Commissioner Mario Monti has been appointed to replace Silvio Berlusconi as Italy's prime minister.
News that German Chancellor Angela Merkel's Christian Democratic Union party voted to allow a country to voluntarily exit the euro added to the uncertainty.
The New Zealand dollar fell to more than a 5-month low of 1.3179 against the Australian dollar, compared to yesterday's close of 1.3083. On the downside, 1.320 is seen as the next target level for the NZ dollar.
Against the Japanese yen, the New Zealand dollar slipped to near a 5-week low of 59.79. The next downside target level for the kiwi-yen pair is seen at 59.0. At yesterday's close, the pair was quoted at 60.19.
The New Zealand dollar dropped to 4-day lows of 1.7563 against the euro and 0.7760 against the US dollar. If the kiwi falls further, it may likely target 0.774 against the greenback and 1.758 against the euro. The kiwi-greenback and the euro-kiwi pairs were worth 0.7806 and 1.7464, respectively at yesterday's close.
In the upcoming European session, preliminary third quarter GDP reports from France, Germany and Eurozone, U.K. October CPI, German ZEW economic sentiment index for November and the Eurozone trade data for September are slated for release.
From the U.S., PPI and retail sales for October, results of the New York Federal Reserve's empire state manufacturing survey for November and business inventories for September are expected in the New York morning session.
