Investing.com - The New Zealand dollar dropped against its U.S. counterpart on Tuesday, as demand for the greenback remained broadly supported by speculation that the Federal Reserve will raise interest rates next month.
NZD/USD hit 0.6453 during late Asian trade, the pair's lowest since October 5; the pair subsequently consolidated at 0.6460, declining 0.52%.
The pair was likely to find support at 0.6381, the low of October 2 and resistance at 0.6542, Monday's high.
The greenback remained broadly supported after Federal Reserve Vice-Chair Stanly Fischer said last Thursday that it "may be appropriate" for the Fed to begin raising rates next month.
Markets shrugged off a report by the Federal Reserve Bank of New York on Monday showing that its general business conditions index improved to -10.7 this month from a reading of -11.4 in October. Analysts had expected the index to rise to -6.0 in November.
The kiwi was lower against the Australian dollar, with AUD/NZD adding 0.18% to 1.0951.
Earlier Tuesday, in the minutes of its November policy meeting, the Reserve Bank of Australia said that the slowdown in China and the rest of Asia remains its biggest concern.
The RBA also said that the depreciation of the Australian dollar had helped lift the economy.