Investing.com - The New Zealand dollar rose against its U.S. counterpart on Tuesday, pulling away from a one-year trough despite the release of tepid New Zealand economic reports, as the greenback's broad rally briefly paused.
NZD/USD hit 0.7826 during late Asian trade, the session high; the pair subsequently consolidated at 0.7810, gaining 0.60%.
The pair was likely to find support at 0.7707, Monday's low and a one-year low and resistance at 0.7875, Monday's high.
The greenback took a breather but remained broadly supported by the view that the strengthening economic recovery in the U.S. would prompt the Federal Reserve to hike rates sooner.
A report on Monday showed that U.S. household spending rose at a faster than expected rate in August, indicating that the economic recovery was likely to continue in the current quarter.
In New Zealand, data showed that the ANZ business confidence index fell to a more than two-year low of 13.4 in September, from a reading of 24.4 the previous month.
A separate report showed that building consents in New Zealand were flat last month, after a 1.7% decline in July whose figure was revised from a previously estimated 0.1% uptick.
The New Zealand dollar had come under broad selling pressure last week after Reserve Bank of New Zealand Governor Graeme Wheeler signaled that he is prepared to sell the nation's currency to weaken it.
Elsewhere, revised data showed that China's HSBC manufacturing purchasing managers' index fell to 50.2 in September, from a reading of 50.5 in August.
China is New Zealand's second biggest export partner.
The kiwi was higher against the euro, with EUR/NZD retreating 0.56% to 1.6248.
Later in the day, the U.S. was to publish data on business activity in the Chicago region and a report on consumer confidence.