(MENAFN- FxPro) The New Zealand dollar moved higher against its U.S. counterpart on Monday, but remained within close distance of a four-and-a-half year trough as demand for the greenback remained broadly supported by expectations for a U.S. rate hike in the coming months.
NZD/USD hit 0.7078 during late Asian trade, the session low; the pair subsequently consolidated at 0.7120, up 0.20%.
The pair was likely to find support at 0.7077, Friday's low and the lowest level since September 2010 and resistance at 0.7200, the high of May 29.
The greenback remained supported even after data showed that the U.S. economy contracted in the first quarter, as recent indications of a rebound in growth continued to fuel expectations for higher interest rates.
U.S. gross domestic product contracted at an annual rate of 0.7% in the first three months of the year, instead of the initial estimate of 0.2% growth the Commerce Department said. It was still better than economists' forecast of a 1% contraction.
The kiwi was fractionally lower against the Australian dollar, with AUD/NZD edging up 0.13% to 1.0761.
Earlier Monday, the Australian Bureau of Statistics said that building approvals dropped 4.4% in April, compared to expectations for a 2.0% decline. The change in building approvals for March was revised to an increase of 2.9% from a previously estimated 2.8% rise.
Later in the day, the Institute of Supply Management was to release data on manufacturing activity.
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