Investing.com - The New Zealand dollar was almost unchanged against its U.S. counterpart on Tuesday, after the release of higher-than-expected inflation data from New Zealand, as expectations that the Federal Reserve will continue tapering its stimulus program supported the greenback.
NZD/USD hit 0.8340 during late Asian trade, the pair''s highest since January 17; the pair subsequently consolidated at 0.8328, easing up 0.02%.
The pair was likely to find support at 0.8248, the low of January 17 and resistance at 0.8390, the high of January 13.
Data earlier showed that consumer price inflation in New Zealand ticked up 0.01% in the fourth quarter, compared to expectations for a flat reading, after a 0.9% rise in the three months to September.
Meanwhile, demand for the greenback remained supported by expectations for a reduction to the Fed’s quantitative easing program at the outcome of its next policy meeting on January 29 to USD65 billion from the current USD75 billion.
The kiwi was steady against the euro, with EUR/NZD dipping 0.05% to 1.6277.