Investing.com - The New Zealand dollar held steady against its U.S. counterpart on Wednesday, as demand for the greenback softened as investors locked in gains from the U.S. currency's recent rally.
NZD/USD hit 0.7440 during late Asian trade, the pair's lowest since March 20; the pair subsequently consolidated at 0.7466.
The pair was likely to find support at 0.7394, the low of March 20 and resistance at 0.7512, Tuesday's high.
The New Zealand dollar found some support after data showed that manufacturing activity in China swung back into expansion territory last month. China's manufacturing purchasing managers' index rose to 50.1 in March from a reading of 49.9 the previous month, confounding expectations for a slip to 49.7.
China is New Zealand's second biggest export partner.
In the U.S., investors were now looking ahead to Friday’s U.S. nonfarm payrolls report for further indications on the path of monetary policy.
The greenback had strengthened broadly after Federal Reserve Chair Janet Yellen said in a speech last Friday that a rate hike may be warranted later this year, but added that weakening inflation pressures could force the Fed to delay.
The kiwi was lower against the Australian dollar, with AUD/NZD advanced 0.48% to 1.0230.
Also Wednesday, Statistics Australia said that building approvals fell 3.2% in February, compared to expectations for a 4.0% decline. January's figure was revised to a 5.9% increase from a previously estimated 7.9% gain.
Later in the day, the U.S. was to release the ADP nonfarm payrolls report, while the Institute of Supply Management was to release data on manufacturing activity.