Investing.com - The New Zealand dollar dropped against its U.S. counterpart on Monday, after the release of downbeat consumer sentiment data from New Zealand and as the greenback continued to recover from the Federal Reserve's decision to hold interest rates this month.
NZD/USD hit 0.6348 during late Asian trade, the session low; the pair subsequently consolidated at 0.6356, declining 0.65%.
The pair was likely to find support at 0.6291, the low of September 15 and resistance at 0.6459, Friday's high.
The Westpac Banking Corporation earlier reported that its consumer sentiment index for New Zealand fell to 106 in the third quarter from a reading of 113 in the three months to June.
Meanwhile, the greenback regained strength after the U.S. central bank left short-term interest rates unchanged last Thursday, amid concerns over soft inflation and the effects of recent market volatility on the U.S. economy.
The Fed said it wanted to see "some further improvement in the labor market," and be "reasonably confident" that inflation will increase before hiking rates.
While the decision was not completely unexpected the Fed’s concerns over the uncertain outlook for global growth rattled financial markets and pressured the dollar lower.
The kiwi was lower against the euro, with EUR/NZD advancing 0.78% to 1.7794.