Shutterstock photo
Markets

Forex - NZD/USD down on Japan quake, reactor concerns

Shutterstock photo

Shutterstock photo

Forex Pros - The New Zealand dollar was down against its U.S. counterpart on Monday, after Friday's massive earthquake and tsunami in Japan and the struggle to contain the nuclear accident it triggered weighed on risk appetite.

NZD/USD hit 0.7367 during late Asian trade, the daily low; the pair subsequently consolidated at 0.7387, shedding 0.52%.

The pair was likely to find support at 0.7325, Friday's low and resistance at 0.7480, the high of March 2.

Earlier in the day, the Bank of Japan injected a record JPY15 trillion into the financial system and doubled the size of its asset-purchase program to JPY10 trillion.

Japan's Finance Minister Yoshihiko Noda said that he was closely watching the foreign exchange, stock and Japanese bond markets.

Meanwhile, radiation levels around the Tokyo Electric Power Co. station in Fukushima, north of Tokyo, rose after cooling systems at a second reactor failed, heightening concerns about a meltdown. Earlier Monday, the Ministry of Economy, Trade & Industry said a hydrogen explosion had occurred at a separate reactor at the site.

The kiwi was also sharply lower against the euro, with EUR/NZD surging 0.78% to hit 1.8861.

On Thursday, the Reserve Bank of New Zealand cut its official cash rate to 2.50% in order to offset the economic impact of the earthquake that devastated the nation's second-largest city of Christchurch last month.

Forex News

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

ForEx

Latest Markets Videos