Forex News: NZ Dollar Falls Amid Risk-off Mood

NZ Dollar Falls Amid Risk-off Mood

(RTTNews) - The New Zealand dollar weakened against other major currencies in the Asian session on Tuesday, as European stocks traded lower, even as London's FTSE 100 may rise at open as oil prices continued to climb amid concerns over the prospects of a diplomatic resolution to reopen the Strait of Hormuz, a key route for global energy supplies.

U.S. stock futures ticked lower amid stalled Iran-U.S. diplomacy and ahead of earnings reports from retailers Walmart, Target and Home Depot due this week.

Traders also await minutes of the Federal Reserve's July policy meeting scheduled for Wednesday for additional clues on the outlook for interest rates.

In geopolitical news, U.S. President Donald Trump said that informal talks are taking place with Iran's Revolutionary Guard, but he is "not in a hurry" to make a deal.

Iran has announced reaching an understanding with Oman over the route for maritime traffic in the Strait of Hormuz.

Global bond yields are on the rise, with Japan's 10-year government bond hitting a three-decade high and Euro zone government bond yields hovering near their highest levels in more than 15 years, on concerns that renewed energy inflation could keep interest rates elevated.

In the European trading today, the NZ dollar fell to a 5-day low of 1.2087 against the Australian dollar, from an early high of 1.2033. The kiwi may test support near the 1.22 region.

Against the U.S. dollar and the euro, the kiwi slid to 4-day lows of 0.5873 and 1.9701 from early highs of 0.5909 and 1.9606, respectively. If the kiwi extends its downtrend, it is likely to find support around 0.57 against the greenback and 2.01 against the euro.

The kiwi edged down to 93.80 against yen, from an early high of 94.18. On the downside, 91.00 is seen as the next support level for the kiwi.

Looking ahead, Germany ZEW economic sentiment index for August is due to be release at 5:00 am ET in the European session.

In the New York session, Canada housing starts for July, U.S. ADP weekly employment data, U.S. building permits for July, U.S. import and export prices for July, U.S. NY Fed services activity index for August, U.S. Redbook report, U.S. industrial and manufacturing productions for July, are slated for release.

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