Investing.com - The New Zealand dollar slipped lower against its U.S. counterpart on Thursday, as market volatility caused by the devaluation of the yuan began to ease and demand for the greenback regained ground amid expectations for a September rate hike in the U.S.
NZD/USD hit 0.6590 during late Asian trade, the session low; the pair subsequently consolidated at 0.6605, shedding 0.21%.
The pair was likey to find support at 0.6514, the low of August 11 and resistance at 0.6682, the high of July 31.
Asian currencies were hit on Wednesday after the People's Bank of China devalued the yuan for a second consecutive day.
China devalued its currency by 2% in a surprise move on Tuesday to make its exports more competitive and shore up growth in the flagging economy.
The PBOC has described the move as a “one-off depreciation”, based on a new way of managing the exchange rate that better reflected market forces.
The kiwi was steady against the Australian dollar, with AUD/NZD at 1.1141.
Earlier Thursday, the Melbourne Institute reported that its inflation expectations for the next 12 months ticked up to 3.7% in July from 3.4% the previous month.