Investing.com - The New Zealand dollar edged up against its U.S. counterpart on Tuesday, as it recovered from the previous session's sharp losses, but demand for the greenback still remained broadly supported.
NZD/USD hit 0.6332 during late Asian trade, the session high; the pair subsequently consolidated at 0.6329, edging up 0.17%.
The pair was likely to find support at 0.6255, the low of September 10 and resistance at 0.6459, the high of September 18.
The greenback continued to regain strength after the U.S. central bank left short-term interest rates unchanged last Thursday, amid concerns over soft inflation and the effects of recent market volatility on the U.S. economy.
The Fed said it wanted to see "some further improvement in the labor market," and be "reasonably confident" that inflation will increase before hiking rates.
While the decision was not completely unexpected the Fed’s concerns over the uncertain outlook for global growth rattled financial markets and pressured the dollar lower.
The kiwi was steady against the Australian dollar, with AUD/NZD at 1.1288.
Earlier Tuesday, the Australian Bureau of Statistics reported that its house price index increased by 4.7% in the second quarter, beating expectations for a 2.5% rise, after a 1.6% gain in the three months to March.