Investing.com - The New Zealand dollar declined against its U.S. counterpart on Tuesday, as investors remained cautious amid ongoing tensions between Russia and Ukraine and as Monday's manufacturing data from China continued to weigh.
NZD/USD hit 0.8342 during late Asian trade, the pair's lowest since August 27; the pair subsequently consolidated at 0.8346, shedding 0.36%.
The pair was likely to find support at 0.8311, the low of August 26 and a six-month low and resistance at 0.8407, the high of August 28.
Investors continued to monitor developments in Ukraine after European Union leaders threatened over the weekend to impose a new round of sanctions on Russia if Moscow does not scale back its involvement in the conflict in eastern Ukraine.
The commodity-linked currency had come under some pressure on Monday, after data showed that factory growth in China slowed last month.
The kiwi was steady against the Australian dollar, with AUD/NZD dipping 0.07% to 1.1132 .
Also Tuesday, At its monthly policy meeting, the Reserve Bank of Australia held its benchmark interest rate at a record-low 2.50%, in a widely expected move and said that the overvalued Australian dollar is weighing on efforts to support growth.
RBA Governor Glenn Stevens said the Australian dollar "remains above most estimates of its fundamental value" and that it "is offering less assistance than would normally be expected in achieving balanced growth in the economy."
Separately, official data showed that building approvals rose 2.5% in July, beating expectations for an increase of 1.5%. The change of building approvals in June was revised to a 3.8% decline from a previously estimated 5.0% drop.
Later in the day, the Institute of Supply Management was to publish a report on U.S. manufacturing activity.