New Zealand dollar was still on negative territory against its US counterpart during European late morning session on Tuesday, as uncertainty over the future of Feds stimulus program urged investors to act cautiously.
NZD/USD reached a session low at 0.7767 at 8:08 GMT, after which consolidation followed at 0.7783, plummeting 0.92% on a daily basis. Support was likely to be received at August 5th low, 0.7737, while resistance was to be met at August 6th high, 0.7918.
The lack of clarity over when the Federal Reserve Bank will begin tapering its easing program was still present, after on Monday it became clear that durable goods orders in the United States dropped by 7.3% to 226.3 billion USD in July, while the median estimate pointed a lesser decrease, by 4.0%, as this data raised concerns over domestic demand.
This indicator came out after on Friday it was reported that US new home sales declined at a faster than projected pace of 13.4% in the month of July, also marking the most considerable drop in over three years.
Meanwhile, markets remained jittery, after US Secretary of State John Kerry said that President Barack Obama will hold Syrian government accountable for the “moral obscenity” of using chemical weapons, which boosted the appeal of the greenback as a safe haven.
The dollar index, which tracks the performance of the US dollar against a basket of six other major currencies, appreciated 0.35% to reach 81.585.
Elsewhere, the kiwi dollar was slightly lower against the Aussie, as AUD/NZD cross added 0.06% for the day to trade at 1.1511 at 8:46 GMT.
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