Investing.com - The New Zealand dollar was higher against its U.S. counterpart on Wednesday, as demand for the greenback continued to broadly weaken and as investors awaited the Reserve Bank of New Zealand's policy statement due the next day.
NZD/USD hit 0.7196 during late Asian trade, the pair's highest since June 3; the pair subsequently consolidated at 0.7154, advancing 0.32%.
The pair was likely to find support at 0.7085, Tuesday's low and resistance at 0.7207, the high of June 2.
The greenback weakened as investors continued to lock-in profits from the currency's recent rally after an above forecast U.S. jobs report on Friday underlined expectations that the Fed could start to raise rates at its September meeting.
On Thursday, the RBNZ was expected leave its benchmark interest rate unchanged at 3.50%. Market participants were looking ahead to the central bank's monthly press conference for further indications on its next monetary policy moves.
The kiwi was steady against the Australian dollar, with AUD/NZD at 1.0781.
Earlier Wednesday, the Westpac Banking Corporation reported that consumer sentiment in Australia dropped 6.9% this month, after a 6.4% increase the previous month.
Separately, Reserve Bank of Australia Governor Glenn Stevens signaled the possibility of further interest rate cuts in the future but added that policymakers should not expect too much from monetary policy, warning that it could lead to "much bigger problems" for the economy.