Investing.com - The Kiwi gained further in Asia on Tuesday despite remarks from RBNZ Governor Graeme Wheeler on the scope for further interest rate cuts, while the Aussie and yen edged higher as well in a light regional data day.
NZD/USD traded at 0.7298, up 0.36%, while AUD/USD changed hands at 0.7635, up 0.20% and USD/JPY traded at 100.13, down 0.20%.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last quoted at 94.46, down 0.06%.
Market players are focused on a highly anticipated speech by Fed Chair Janet Yellen at the annual meeting of top central bankers and economists in Jackson Hole, Wyoming, this week for fresh clues on the timing of the next U.S. rate hike. According to Investing.com's Fed Rate Monitor Tool, investors are pricing in a 18% chance of a rate hike by September, up from just 6% at the start of last week. December odds were at around 52%, compared to 46% on Friday.
Overnight, the dollar pared gains against the other major currencies in subdued trade on Monday, but hopes for a possible U.S. rate hike before the end of the year still lent support to the greenback.
The dollar remained supported after Federal Reserve Vice Chair Stanley Fischer on Sunday noted the strong gains of U.S. labor market under the current economic expansion that is close to the Fed's goals of maximum employment and price stability. San Francisco Federal Reserve President John Williams on Thursday signaled support for a September rate increase.
"In the context of a strong domestic economy with good momentum, it makes sense to get back to a pace of gradual rate increases, preferably sooner rather than later," he said.
Minutes of the Federal Reserve's July policy meeting published earlier in the week showed committee members remained divided on the timing of the next rate hike, although there is general agreement that more data is needed before such a move.