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Forex - NZD/USD hits 2-month lows in cautious trade

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Investing.com -

Investing.com - The New Zealand dollar dropped to two-month lows against its U.S. counterpart on Tuesday, as demand for risk-related assets weakened amid renewed geopolitical concerns in Ukraine and Iraq.

NZD/USD hit 0.8409 during late Asian trade, the pair's lowest since June 4; the pair subsequently consolidated at 0.8422, retreating 0.43%.

The pair was likely to find support at 0.8402, the low of June 4 and resistance at 0.8476, Monday's high.

Market sentiment was hit after Iraq on Monday named Haidar al-Abadi as the new prime minister to end the eight-year rule of Nuri al-Maliki, but Maliki has refused to go and deployed special forces in Baghdad.

In Ukraine, a Russian convoy of 280 trucks carrying humanitarian aid set off on Tuesday amid Western warnings against using help as a pretext for an invasion.

The kiwi was lower against the Australian dollar, with AUD/NZD gaining 0.35% to 1.0990.

Also Tuesday, the National Australia Bank said its business confidence index rose to 11 last month, from a reading of 8 in June.

Data also showed that house price inflation in Australia rose 1.8% in the second quarter, compared to expectations for a 1.1% increase. The first quarter's figure was revised to a 1.5% gain from a previously estimated 1.7% rise.

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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.

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