Investing.com - The New Zealand dollar tumbled over 1% against its U.S. counterpart on Thursday, after the Reserve Bank of New Zealand signaled the possiblity of upcoming rate cuts, while sentiment on the greenback remained vulnerable after the Federal Reserve's latest policy statement.
NZD/USD hit 0.7594 during late Asian trade, the pair's lowest since April 27; the pair subsequently consolidated at 0.7591, declining 1.23%.
The pair was likely to find support at 0.7540, the low of April 24 and resistance at 0.7670, the high of April 27.
In a widely expected move, the RBNZ held its benchmark interest rate at 3.50% but said it could lower borrowing costs in the future.
"The bank expects to keep monetary policy stimulatory and is not currently considering any increase in interest rates," RBNZ Governor Graeme Wheeler said.
He added that "it would be appropriate to lower the official cash rate if demand weakens and wage and price-setting outcomes settle at levels lower than is consistent with the inflation target."
Also Thursday, Statistics New Zealand reported that building consents increased by 11.0% in March, after a 6.3% decline the previous month.
Meanwhile, the greenback remained under pressure after the Fed cited weakness in the U.S. economy, leading investors to believe that the central bank will not raise interest rates in the near future.
In its monthly policy statement on Wednesday, the Fed said it will take into account labor market conditions, inflationary pressures and expectations of international financial developments when it decides on the timing of a rate increase.
The statement came after data on Wednesday showed that the U.S. gross domestic product grew just 0.2% in the three months to March, slowing from 2.2% in the final quarter of 2014. It was the slowest rate of growth in a year.
The kiwi was lower against the euro, with EUR/NZD advancing 0.90% to 1.4631.
Later in the day, the U.S. was to publish data on initial jobless claims.