New Zealand dollar continued its slide against the US dollar on Tuesday, following the comments by NZ Prime Minister John Key on Monday.
NZD/USD fell to its lowest point during the session at 0.7979 at 4:00 GMT, after which consolidation followed at 0.7995. Support was likely to be found at July 19th low, 0.7887, while resistance was to be met at June 17th high, 0.8100.
Yesterday the Prime Minister of New Zealand Key said that the national currency was still overvalued. Policymakers in New Zealand have had concerns throughout the year that a strong kiwi dollar will cause influence on countrys sectors of manufacturing and industry.
Additionally, today it became clear that the number of building permits in New Zealand recorded a drop by 4.0% in the month of June, while data during May showed a 1.0% increase, a revision down from a 1.3% rise previously.
Meanwhile, the greenback found certain support on Monday, after the release of pending home sales report from the United States, which added to expectations over the possible short-term pare back of Federal Reserve’s Quantitative Easing. According to yesterday’s data, pending home sales decreased at a smaller than projected pace in June, by 0.4% compared to 1.0%. The index jumped by 10.9% in June this year, compared to June 2012.
Elsewhere, the kiwi was trading significantly higher against the Australian dollar, as AUD/NZD plummeted 1.05% to 1.1344 at 9:23 GMT.
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