Investing.com - The New Zealand dollar declined against its U.S. counterpart on Wednesday, as investors locked in profits following the kiwi''s rally to 31-month highs against the greenback, although demand for the U.S. dollar still remained under pressure.
NZD/USD hit 0.8587 during late Asian trade, the pair''s lowest since March 26; the pair subsequently consolidated at 0.8606, sliding 0.37%.
The pair was likely to find support at 0.8533, the low of March 25 and resistance at 0.8702, Tuesday''s high and a 31-month high.
Sentiment on the greenback remained vulnerable after Federal Reserve Chair Janet Yellen on Monday said that "considerable slack" still remained in the labor market and reiterated that the Fed’s commitment to economic stimulus will still be needed for some time.
The kiwi was lower against the Australian dollar, with AUD/NZD rising 0.29% to 1.0736.
Also Wednesday, official data showed that building approvals in Australia dropped 5.0% in February, compared to expectations for a 2.5% decline. Building approvals in January were revised up to a 6.9% increase from a previously estimated 6.8% rise.
Later in the day, the U.S. was to release the ADP report on private sector job creation, as well as data on factory orders.