Investing.com - The New Zealand dollar climbed against its U.S. counterpart on Tuesday, after data showed that inflation expectations for New Zealand ticked higher in the last quarter.
NZD/USD hit 0.7444 during late Asian trade, the session high; the pair subsequently consolidated at 0.7416, gaining 0.33%.
The pair was likely to find support at 0.7314, the low of May 13 and a two-month low and resistance at 0.7494, the high of May 15.
In a report, the Reserve Bank of New Zealand said its inflation expectations for the next two years ticked up to 1.9% in the last quarter from 1.8% in the three months to December.
Meanwhile, the greenback continued to recover from recent losses as investors turned their attention to Friday’s U.S. inflation data and Wednesday’s minutes of the Federal Reserve's April meeting for fresh indications on the timing of an initial rate hike.
The U.S. dollar had come under broad selling pressure as a string of downbeat economic reports dampened hopes for a second quarter rebound after a sharp slowdown in growth in the first three months of the year.
The kiwi was higher against the Australian dollar, with AUD/NZD declining 0.31% to 1.0782.
In the minutes of its May policy meeting, the Reserve Bank of Australia said it remained open to further rate cuts, due to the slowdown in China's economy and concerns over the Australian job market.
Earlier in the month, the RBA lowered its benchmark interest rate by 0.25% from 2.25% to a record-low 2.00%.
Later in the day, the U.S. was to publish data on building permits and housing starts.