Investing.com - The New Zealand dollar edged down against its U.S. counterpart on Monday, but losses were expected to remain limited as demand for the greenback was in check after the minutes of the Federal Reserve's March policy meeting.
NZD/USD hit 0.8650 during late Asian trade, the session low; the pair subsequently consolidated at 0.8661, retreating 0.33%.
The pair was likely to find support at 0.8606, the low of April 8 and resistance at 0.8746, the high of April 10 and 32-month high.
Demand for the U.S. dollar briefly improved after data on Friday showed that U.S. producer prices rose 0.5% in March, the largest increase in nine months and ahead of expectations for a 0.1% increase.
But the greenback remained under pressure after the minutes of the Federal Reserve’s March meeting indicated that an interest rate increase is unlikely to be warranted for some time.
The Fed’s March meeting minutes, released on Wednesday, showed that policymakers discussed whether to keep interest rates at record lows until inflation moves higher, and did not elaborate on a possible timeframe for when rates could start to rise.
The kiwi was lower against the Australian dollar, with AUD/NZD rising 0.25% to 1.0844.
Later in the day, the U.S. was to produce data on retail sales.