Investing.com - The New Zealand dollar edged lower against its U.S. counterpart on Tuesday, as concerns over violence in Irak continued to dampen demand for risk-related currencies and as Monday's U.S. data lent further support to the greenback.
NZD/USD hit 0.8654 during late Asian trade, the pair's lowest since June 13; the pair subsequently consolidated at 0.8667, edging down 0.10%.
The pair was likely to find support at 0.8606, the low of June 12 and resistance at 0.8710, the high of May 7.
Market sentiment remained under pressure as concerns over the ongoing Sunni insurgency in Iraq fuelled fears over the impact of higher oil prices on global economic growth.
Meanwhile, the greenback found some support after data on Monday showed that manufacturing activity in New York state expanded more quickly than forecast in June, while a separate report showed that industrial production rose more-than-expected in May.
The kiwi was higher against the Australian dollar, with AUD/NZD declining 0.42% to 1.0789.
Also Tuesday, in the minutes of its June policy meeting, the Reserve Bank of Australia said that it is hard to gauge how much low interest rates will offset a drop in mining investment and tighter fiscal policy, adding that the currency was providing less assistance to rebalancing growth.
Separately, official data showed that new motor vehicle sales in Australia rose 0.3% last month, after a flat reading in April.
Later in the day, the U.S. was to produce data on housing starts, building permits and consumer prices.