NEW YORK (Forex News Now) – The New Zealand dollar slumped versus its U.S. counterpart on Tuesday, in the wake of a disappointing on German investor morale and as FX traders awaited key data on U.S. retail sales.
In European afternoon currency market trading, NZD/USD hit 0.7282, down 0.82 percent on the day, after retreating from Monday’s 5-week high of 0.7342.
The Census Bureau was later due to publish its report for August on U.S. retail sales, a key signal of consumer spending; the bureau was also scheduled to release data on U.S. business inventories.
According to intraday analysis, NZD/USD was likely to touch support around the low of Sept. 8, 0.7159, and encounter immediate resistance around Monday’s high, 0.7342.
The kiwi’s losses also came as FX traders’ risk appetite was dented by disappointing economic data from Germany: The Mannheim-based ZEW think tank said earlier that its monthly poll of German economic sentiment fell to -4.3 during the month, down from 14 in August.
Elsewhere, the kiwi dropped versus sterling: GBP/NZD traded at 2.1151, up 0.65 percent.