Investing.com - The New Zealand dollar was higher against its U.S. counterpart on Tuesday, as demand for the greenback cooled after Monday's upbeat U.S. economic reports sparked expectations for a rate hike in the near future.
NZD/USD hit 0.7285 during late Asian trade, the session high; the pair subsequently consolidated at 0.7545, gaining 0.44%.
The pair was likely to find support at 0.7472, the low of February 25 and resistance at 0.7617, the high of February 25.
The greenback had rallied broadly on Monday after data showed that U.S. manufacturing activity continued to expand in February supported expectations for higher interest rates.
The kiwi was lower against the Australian dollar, with AUD/NZD rising 0.35% to 1.0375.
The Reserve Bank of Australia surprised markets on Tuesday when it held its benchmark interest rate at 2.25%, but signalled that rate cuts could be necessary in the future. Analysts had expected the central bank to lower borrowing costs by 0.25% this month.
Commenting on the decision, RBA Governor Glenn Stevens said that "further easing of policy may be appropriate over the period ahead, in order to foster sustainable growth in demand and inflation consistent with the target."
Separately, the Australian Bureau of Statistics reported that building approvals increased by 7.9% in January, beating expectations for a 1.8% decline. December's figure was revised to a 2.8% drop from a previously estimated 3.3% slide.
Data also showed that Australia's current account deficit narrowed to A$9.6 billion in the fourth quarter of 2014 from A$12.1 billion in the previous quarter, whose figure was revised from a previously estimated deficit of A$12.5 billion.
Analysts had expected the current account deficit to narrow to A$11.0 billion in the last quarter.