NZD/USD falls to a five month low

The New Zealand dollar has fallen to a five-month low versus the US dollar, as market sentiment remained pressurised after political leaders in Greece were unable to agree on the formation of a coalition government, putting the country’s access to international support at risk, reports Forexpros.

NZD/USD tumbled to 0.7648 during Asian trade, the lowest the pair has been since 20 December. Subsequently, the pair consolidated at 0.7650, marking a fall of 0.55 per cent. The pair was expected to find support at the 12 December low of 0.7609 and resistance at the 20 December high of 0.7715.

Sentiment was hit after Tuesday’s announcement from Greece that political leaders had been unable to reach an agreement after cross party discussions to form a coalition government. This followed the election on 6 May that saw no party gain a clear majority.

Elsewhere, the New Zealand dollar was marginally lower against its Australian counterpart, with the AUD/NZD climbing by 0.09 per cent to 1.2926. the Westpac Banking Corporation also said on Wednesday that Australian consumer sentiment has gone up by 0.8 per cent t 95.3 this month, hovering close to its weakest level so far this year and on the back of a fall of 1.6 per cent in April.