(MENAFN- FxPro) The New Zealand dollar fell against its U.S. counterpart on Tuesday, hovering close to last week's nearly five-year trough as demand for the greenback remained supported ahead of the Federal Reserve's upcoming policy meeting.
NZD/USD hit 0.6977 during late Asian trade, the session low; the pair subsequently consolidated at 0.6989, slipping 0.14%.
The pair was likely to find support at 0.6941, the low of June 12 and a nearly five-year low and resistance at 0.7027, the high of June 12.
The greenback found support despite data on Monday showing that U.S. industrial production fell unexpectedly last month.
Market participants were looking ahead to the outcome of the Fed's latest policy meeting on Wednesday for a clear signal on when it could start to raise interest rates.
The kiwi was higher against the Australian dollar, with AUD/NZD easing 0.10% to 1.1083.
In the minutes of its June policy meeting, the Reserve Bank of Australia reaffirmed on Tuesday that it would consider further cuts if necessary.
In a speech last week, RBA Governor Glenn Stevens had said that any further rate cuts would have only limited impact on economic activity, and that it was up to governments and business to boost the economy.
The minutes also said that the Australian dollar needs "further depreciation."
Later in the day, the U.S. was to release data on housing starts and building permits.
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