On Tuesday the kiwi dollar was higher against its U.S. peer, as demand for the greenback declined after Monday's upbeat U.S.
economic reports sparked expectations for a rate hike in the near
future.
NZD/USD hit 0.7285 during late Asian trade, the session high; the pair subsequently consolidated at 0.7545, gaining 0.44%. Cable was likely to find support at 0.7472, the low of February 25 and resistance at 0.7617, the high of February 25.
On Monday the greenback had rallied broadly after data showed that U.S. manufacturing activity continued to expand in February supported expectations for higher interest rates.
The New Zealand dollar was lower against the Australian dollar, with AUD/NZD rising 0.35% to 1.0375.
The Reserve Bank of Australia surprised markets on Tuesday when it held its benchmark interest rate at 2.25%, but signalled that rate cuts could be necessary in the future. Analysts had expected the central bank to lower borrowing costs by 0.25% this month.
In the meantime, the Australian Bureau of Statistics reported that building approvals increased by 7.9% in January, beating expectations for a 1.8% decline. December's figure was revised to a 2.8% drop from a previously estimated 3.3% slide.
Australia's current account deficit narrowed to A$9.6 billion in the fourth quarter of 2014 from A$12.1 billion in the previous quarter, whose figure was revised from a previously estimated deficit of A$12.5 billion, according to data. Analysts had expected the current account deficit to narrow to A$11.0 billion in the last quarter.
