Investing.com - The New Zealand dollar dropped against its U.S. counterpart on Monday, after disappointing business confidence data from New Zealand, while demand for the greenback remained broadly supported.
NZD/USD hit 0.6408 during late Asian trade, the pair's lowest since August 26; the pair subsequently consolidated at 0.6425, retreating 0.52%.
The pair was likely to find support at 0.6244, the low of August 24 and a six-year low and resistance at 0.6514, Friday's high.
Data earlier showed that the ANZ business confidence index for New Zealand fell to minus 29.1 this month from 15.3 in July. Analysts had expected the index to improve to minus 7.5 in August.
Meanwhile, the greenback remained supported after Federal Reserve Vice Chairman Stanley Fischer said it was still too early to determine whether to raise short-term interest rates from near zero, where they have been held since December 2008, at the bank’s September meeting.
The U.S. dollar had also strengthened after data last Thursday showed that the U.S. economy grew at a faster than expected rate in the second quarter.
The kiwi was sharply lower against the euro, with EUR/NZD rallying 1.11% to 1.7507.