(MENAFN- FxPro) The New Zealand dollar was higher against its U.S. counterpart on Wednesday, but continued to hover close to a recent six-year trough as concerns over a global economic slowdown sparked by difficulties in China continued to weigh broadly on sentiment.
NZD/USD hit 0.6369 during late Asian trade, the session high; the pair subsequently consolidated at 0.6360, gaining 0.47%.
The pair was likely to find support at 0.6244, the low of August 24 and a six-year trough and resistance at 0.6481, the high of August 31.
Investors remained cautious amid ongoing volatility on Asian equity markets. Shares in Shanghai plunged over 4% at the open of trading on Wednesday.
Market volatility increased after data on Tuesday showed that manufacturing activity in China contracted at its fastest rate in three years in August, while service sector activity also slowed.
The weak data fueled fears over a worsening slowdown in the world's second-largest economy.
The kiwi was higher against the Australian dollar, with AUD/NZD slipping 0.18% to 1.1064.
Earlier Wednesday, the Australian Bureau of Statistics reported that the country's gross domestic product rose 0.2% in the three months to June, compared to expectations for a 0.4% growth rate. Australia's economy expanded by 0.9% in the first quarter.
On a yearly basis, Australia's GDP increased by 2.0% in the second quarter, disappointing expectations for a 2.2% gain.
The data came a day after the Reserve Bank of Australia held its benchmark interest rate at a record-low 2.00%, saying that the now four-month long pause on rates was "appropriate" given the moderately growing Australian economy.
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