Investing.com - The New Zealand dollar dropped to nearly three-week lows against its U.S. counterpart on Thursday, as demand for the greenback continued to be supported by Federal Reserve Chairwoman Janet Yellen's recent remarks.
NZD/USD hit 0.8683 during late Asian trade, the pair's lowest since June 25; the pair subsequently consolidated at 0.8692, shedding 0.23%.
The pair was likely to find support at 0.8662, the low of June 25 and resistance at 0.8768, the high of July 7.
The greenback strengthened broadly after Ms. Yellen said Tuesday that rates could rise sooner if the economic recovery continued to improve. However, the Fed chair also said that if the recovery was disappointing monetary policy would remain accommodative.
The kiwi was lower against the Australian dollar, with AUD/NZD rising 0.27% to 1.0783.
Also Thursday, the National Australia Bank said its business confidence index ticked down to 6 in the second quarter, from a reading of 7 in the first quarter, whose figure was upwardly revised from a previously estimated reading of 6.
In a addition, the Conference Board said its leading index for Australia rose by 0.2% in May, after a 0.2% fall in April, whose figure was revised from a previously estimated 0.1% decline.
Later in the day, the U.S. was to publish reports on initial jobless claims, housing starts, building permits, and the Philly Fed manufacturing index.