Investing.com - The New Zealand dollar edged higher against its U.S. counterpart on Tuesday, as positive economic reports out of the euro zone and China on Monday supported market sentiment.
NZD/USD hit 0.7841 during late Asian trade, the session high; the pair subsequently consolidated at 0.7829, adding 0.24%.
The pair was likely to find support at 0.7722, the low of August 30 and resistance at 0.7918, the high of August 6.
Risk appetite strengthened after data on Monday showed that Chinese manufacturing activity expanded for the first time in a year in August.
In the euro zone, data showed that manufacturing activity in Spain and Italy returned to growth for the first time since 2011.
Meanwhile, demand for the greenback remained supported by expectations that the Federal Reserve will start to unwind it stimulus program at it policy meeting on September 18.
Investors were looking ahead to Friday’s U.S. nonfarm payrolls report which is seen as central to the Fed’s decision on tapering.
The kiwi was lower against the Australian dollar with AUD/NZD rising 0.32%, to hit 1.1536.
Also Tuesday, the Reserve Bank of Australia held interest rates at a record-low 2.5%, in line with expectations.
Separately, official data showed that retail sales in Australia rose 0.1% in July, below expectations for a 0.4% increase, after a flat reading the previous month.
Data also showed that Australia's current account widened unexpectedly in the second quarter, falling to AUD9.4 billion from a downwardly revised deficit of AUD8.7 billion in the three months to March.
Analysts had expected the current account deficit to remain unchanged in the last quarter.
Later in the day, the Institute of Supply Management was to release data on manufacturing activity.
NZD/USD hit 0.7841 during late Asian trade, the session high; the pair subsequently consolidated at 0.7829, adding 0.24%.
The pair was likely to find support at 0.7722, the low of August 30 and resistance at 0.7918, the high of August 6.
Risk appetite strengthened after data on Monday showed that Chinese manufacturing activity expanded for the first time in a year in August.
In the euro zone, data showed that manufacturing activity in Spain and Italy returned to growth for the first time since 2011.
Meanwhile, demand for the greenback remained supported by expectations that the Federal Reserve will start to unwind it stimulus program at it policy meeting on September 18.
Investors were looking ahead to Friday’s U.S. nonfarm payrolls report which is seen as central to the Fed’s decision on tapering.
The kiwi was lower against the Australian dollar with AUD/NZD rising 0.32%, to hit 1.1536.
Also Tuesday, the Reserve Bank of Australia held interest rates at a record-low 2.5%, in line with expectations.
Separately, official data showed that retail sales in Australia rose 0.1% in July, below expectations for a 0.4% increase, after a flat reading the previous month.
Data also showed that Australia's current account widened unexpectedly in the second quarter, falling to AUD9.4 billion from a downwardly revised deficit of AUD8.7 billion in the three months to March.
Analysts had expected the current account deficit to remain unchanged in the last quarter.
Later in the day, the Institute of Supply Management was to release data on manufacturing activity.