(MENAFN- FxPro) The New Zealand dollar was higher against its U.S. counterpart on Tuesday, as investors locked in profits from the greenback recent rally due to strong U.S. data and growing expectations for a U.S. rate hike in the coming months.
NZD/USD hit 0.7133 during late Asian trade, the session high; the pair subsequently consolidated at 0.7129, climbing 0.58%.
The pair was likely to find support at 0.7064, Monday's low and a four-and-a-half year low and resistance at 0.7200, the high of May 29.
The greenback had strengthened broadly after data on Monday showed that the Institute of Supply Management's index of manufacturing activity was 52.8, up from 51.5 in April and ahead of forecasts for 52.0.
Another report showed that U.S. construction spending rose to the highest level in six-and-a-half years in April, adding to recent signs that the economy is rebounding from a weak first quarter.
The Commerce Department said construction spending jumped 2.2% to an annual rate of $1.0 trillion, the highest since November 2008.
The kiwi was lower against the Australian dollar, with AUD/NZD advancing 0.73% to 1.0802.
Earlier Tuesday, the Reserve Bank of Australia left its benchmark interest rate at a record-low 2.00%, in a widely expected move.
Commenting on the decision, RBA Governor Glenn Stevens said monetary policy will remain "accomodative," leaving the door open for further rate cuts.
Later in the day, the U.S. was to report on factory orders.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.