Investing.com - The New Zealand dollar was lower against its U.S. counterpart on Tuesday, tracking losses in the Australian dollar following a larger-than-expected rate cut by the Reserve Bank of Australia.
NZD/USD hit 0.8135 during late Asian trade, the pair’s lowest since April 27; the pair subsequently consolidated at 0.8134, shedding 0.62%.
The pair was likely to find support at 0.8086, the low of April 23 and a one-month low and resistance at 0.8188, the high of April 26.
The RBA unexpectedly cut its benchmark interest rate from 4.25% to 3.75%, a two-year low.
Commenting on the decision RBA Governor Glenn Stevens said the rate cut was “judged to be necessary in order to deliver the appropriate level of borrowing rates.”
Sentiment remained somewhat supported after official data showed that Chinese manufacturing activity grew for the fifth consecutive month in April.
The manufacturing purchasing managers’ index rose to 53.3 from 53.1 in March. Analysts had expected the index to rise to 53.6 in April.
Elsewhere, the kiwi was higher against the Australian dollar with AUD/NZD declining 0.46%, to hit 1.2680.
Later in the day, the U.S. was to release a closely watched report by Institute for Supply Management on manufacturing activity.
NZD/USD hit 0.8135 during late Asian trade, the pair’s lowest since April 27; the pair subsequently consolidated at 0.8134, shedding 0.62%.
The pair was likely to find support at 0.8086, the low of April 23 and a one-month low and resistance at 0.8188, the high of April 26.
The RBA unexpectedly cut its benchmark interest rate from 4.25% to 3.75%, a two-year low.
Commenting on the decision RBA Governor Glenn Stevens said the rate cut was “judged to be necessary in order to deliver the appropriate level of borrowing rates.”
Sentiment remained somewhat supported after official data showed that Chinese manufacturing activity grew for the fifth consecutive month in April.
The manufacturing purchasing managers’ index rose to 53.3 from 53.1 in March. Analysts had expected the index to rise to 53.6 in April.
Elsewhere, the kiwi was higher against the Australian dollar with AUD/NZD declining 0.46%, to hit 1.2680.
Later in the day, the U.S. was to release a closely watched report by Institute for Supply Management on manufacturing activity.