Investing.com - The New Zealand dollar tumbled to new one-year lows against its U.S. counterpart on Monday, as data showing that the U.S. economy grew at its fastest pace in two-and-a-half years in in the second quarter continued to boost demand for the greenback.
NZD/USD hit 0.7709 during late Asian trade, the pair's lowest since August 2013; the pair subsequently consolidated at 0.7754, tumbling 1.41%.
The pair was likely to find support at 0.7699 and resistance at 0.7961, Friday's high.
The greenback found broad support after the Commerce Department reported that U.S. gross domestic product was revised up to 4.6% in the three months to June from a previous estimate of 4.2%. It was the fastest rate of expansion since the fourth quarter of 2011.
The upbeat data added to the view that the strengthening economic recovery may prompt the Federal Reserve to raise interest rates sooner than markets are expecting.
The New Zealand dollar had come under pressure last Thursday after Reserve Bank of New Zealand Governor Graeme Wheeler signaled that he is prepared to sell the nation's currency to weaken it.
The kiwi was also lower against the Australian dollar, with AUD/NZD climbing 0.85% to 1.1235.
Later in the day, the U.S. was to produce data on personal income and expenditure, as well as a private sector report on pending home sales.