Investing.com - The New Zealand dollar edged higher against its U.S. counterpart on Tuesday, but gains were expected to be limited by downbeat manufacturing data from China and overall risk-aversion.
NZD/USD hit 0.7762 during late Asian trade, the session high; the pair subsequently consolidated at 0.7752, edging up 0.10%.
The pair was likely to find support at 0.7659, the low of December 10 and resistance at 0.7850, the high of December 12.
Data earlier showed that the China HSBC Flash Manufacturing Purchasing Managers' Index swung into contraction territory at 49.5 this month from a reading of 50.0 in November, confounding expectations for a fall to 49.9.
China is New Zealand's second biggest export partner.
Investors also remained cautious ahead of Wednesday's Federal Reserve policy statement, as ongoing speculation over the prospects for a U.S. rate hike next year fuelled expectations that the U.S. central bank could adjust its forward guidance.
The kiwi was lower against the Australian dollar, with AUD/NZD adding 0.16% to 1.0620.
Also Tuesday, in the minutes of the Reserve Bank of Australia's December policy meeting, board members said they "noted that market expectations implied some chance of an easing of policy during 2015."
The report then added that "members considered that the most prudent course was likely to be a period of stability in interest rates."
Later in the day, the U.S. was to publish reports on building permits and housing starts, while New Zealand was to release data on its current account.