Investing.com - The New Zealand dollar was steady against its U.S. counterpart on Tuesday, as Monday's strong U.S. manufacturing data added to expectations for the Federal Reserve to begin tapering its monthly asset purchases in the near future.
NZD/USD hit 0.8158 during late Asian trade, the session low; the pair subsequently consolidated at 0.8180, easing 0.07%.
The pair was likely to find support at 0.8104, the low of November 28 and resistance at 0.8265, the high of November 26.
The greenback remained supported after the Institute for Supply Management said Monday that manufacturing activity in the U.S. expanded at the fastest rate since April 2011 in November, fuelling optimism over the economic recovery.
The ISM manufacturing purchasing managers’ index rose to 57.3 in November from 56.4 in October. Analysts had expected the index to fall to 55.0.
The kiwi was little changed against the Australian dollar, with AUD/NZD inching down 0.06% to hit 1.1113.
Also Tuesday, the Reserve Bank of Australia left its benchmark interest rate unchanged at a record low 2.50%, in line with expectations.
Commenting on the decision, RBA Governor Stevens said the Aussie was "still uncomfortably high" and that a lower currency "is likely to be needed to achieve balanced growth in the economy."
Earlier in the day, official data showed that retail sales in Australia rose 0.5% in October, more than the expected 0.4% rise, after an upwardly revised 0.9% increase the previous month.
NZD/USD hit 0.8158 during late Asian trade, the session low; the pair subsequently consolidated at 0.8180, easing 0.07%.
The pair was likely to find support at 0.8104, the low of November 28 and resistance at 0.8265, the high of November 26.
The greenback remained supported after the Institute for Supply Management said Monday that manufacturing activity in the U.S. expanded at the fastest rate since April 2011 in November, fuelling optimism over the economic recovery.
The ISM manufacturing purchasing managers’ index rose to 57.3 in November from 56.4 in October. Analysts had expected the index to fall to 55.0.
The kiwi was little changed against the Australian dollar, with AUD/NZD inching down 0.06% to hit 1.1113.
Also Tuesday, the Reserve Bank of Australia left its benchmark interest rate unchanged at a record low 2.50%, in line with expectations.
Commenting on the decision, RBA Governor Stevens said the Aussie was "still uncomfortably high" and that a lower currency "is likely to be needed to achieve balanced growth in the economy."
Earlier in the day, official data showed that retail sales in Australia rose 0.5% in October, more than the expected 0.4% rise, after an upwardly revised 0.9% increase the previous month.