Investing.com - The New Zealand dollar slipped lower against its U.S. counterpart on Tuesday, as concerns over Chinese growth continued to weigh and as demand for the greenback remained broadly supported despite Monday’s weak U.S. data.
NZD/USD hit 0.6729 during late Asian trade, the session low; the pair subsequently consolidated at 0.6738, shedding 0.23%.
The pair was likely to find support at 0.6679, the low of December 18 and resistance at 0.6845, Monday’s high.
The New Zealand dollar was hit after data on Monday showed that China’s Caixin manufacturing purchasing managers’ index fell to 48.2 this month from 48.6 in December, confounding expectations for a rise to 48.9.
It was the lowest reading since September and was well below the 50-point level which separates expansion from contraction.
Markets were also jittery amid concerns over growing tensions in the Middle East after Saudi Arabia cut diplomatic ties with Iran over the weekend.
Meanwhile, the greenback remained supported even after the Institute for Supply Management said on Monday that its manufacturing PMI fell to a six-year low of 48.2 last month from a reading of 48.6 in November.
Analysts had expected the index to inch up to 49.0 in December.
The kiwi was also lower against the Australian dollar, with AUD/NZD gaining 0.42% to 1.0695.