Investing.com - The New Zealand dollar edged higher against its U.S. counterpart on Tuesday, as upbeat Chinese manufacturing data supported demand for the export-related currency, while sentiment on the greenback remained vulnerable.
NZD/USD hit 0.8775 during late Asian trade, the session high; the pair subsequently consolidated at 0.8767, adding 0.10%.
The pair was likely to find support at 0.8728, Monday's low and resistance at 0.8794.
The New Zealand dollar found support after data showed that China’s official manufacturing purchasing managers’ index rose to a six-month high of 51.0 in June, in line with expectations and up from 50.8 in May.
Meanwhile, China’s final HSBC Purchasing Managers Index came in at 50.7, weaker than a preliminary reading of 50.8 but higher than May's 49.4 figure.
China is New Zealand's second biggest export partner.
Meanwhile, the greenback remained under pressure after data last week showing a 2.9% economic contraction in the first quarter bolstered expectations that the Federal Reserve will keep rates on hold for an extended period.
The kiwi was lower against the Australian dollar with AUD/NZD edging up 0.19% to 1.0788.
Also Tuesday, the Reserve Bank of Australia left its benchmark interest rate unchanged at a record low 2.5%, in a widely expected move.
Commenting on the decision, RBA Governor Glenn Stevens said Australia's elevated currency "is offering less assistance than it might in achieving balanced growth in the economy."
Later in the day, the Institute of Supply Management was to publish a report on U.S. manufacturing activity.