Investing.com - The New Zealand dollar was higher against its U.S. counterpart on Tuesday, but gains were expected to remain limited as investors turned their attention to the Federal Reserve's policy meeting this month amid heightened expectations for a rate hike.
NZD/USD hit 0.6390 during late Asian trade, the session high; the pair subsequently consolidated at 0.6371, up 0.50%.
The pair was likely to find support at 0.6316, Monday's low and resistance at 0.6481, Monday's high.
The greenback had found support after Fed Vice Chairman Stanley Fischer said Friday it was still too early to decide whether to raise interest rates from near zero at the bank’s September meeting.
Market participants were looking ahead to the release of U.S. manufacturing data due later in the day, for further indications on the strength of the economy and the possibility of a rate hike this month.
Meanwhile, investors remained cautious however after mixed reports on Chinese manufacturing activity.
Official data showed that China's manufacturing purchasing managers' index slipped to 49.7 in August fron 50.0 the previous month, while the Caixin manufacturing PMI ticked up to 47.3 last month from 47.1 in July.
China is New Zealand's second biggest export partner.
The kiwi was higher against the Australian dollar, with AUD/NZD dropping 0.57% to 1.1157.
In a widely expected move, the Reserve Bank of Australia held its benchmark interest rate at a record-low 2.00% on Tuesday.
Commenting on the decision, RBA Governor Glenn Stevens said the now four-month long pause on rates was "appropriate" given the moderately growing Australian economy.
Separately, the Australian Bureau of Statistics reported that building approvals increased by 4.2% in July, beating expectations for a 2.5% rise. Building approvals declined by 5.2% in June, whose figure was revised from a previously estimated drop of 8.2%.