Investing.com - The New Zealand dollar dropped against its U.S. counterpart on Wednesday, after data showed that New Zealand's current account deficit widened less-than-expected in the last quarter, while investors remained cautious ahead of the Federal Reserve's policy statement.
NZD/USD hit 0.7719 during late Asian trade, the session low; the pair subsequently consolidated at 0.7728, retreating 0.96%.
The pair was likely to find support at 0.7659, the low of December 10 and resistance at 0.7851, Tuesday's high.
In a report, Statistics New Zealand earlier said that the current account deficit widened to NZ$5.01 billion in the third quarter from NZ$1.08 billion in the three months to June. Analysts had expected the current account deficit to widen to NZ$5.32 billion in the last quarter.
Meanwhile, investors remained cautious ahead of the Fed’s policy statement due later in the day, as ongoing speculation over the prospects for a U.S. rate hike next year have fuelled expectations that the U.S. central bank could adjust its forward guidance.
The kiwi was also lower against the euro, with EUR/NZD gaining 0.68% to 1.6152.
Later in the day, the U.S. was to release data on consumer inflation and the current account. New Zealand was to produce data on gross domestic product.