The New Zealand dollar dipped on Tuesday as benign inflation argued against an early policy tightening, while the Aussie held firm ahead of Australian figures that could make or break the case for a cut in rates at home. Latest data showed NZ's Q3 consumer prices rose a smaller-than-expected 0.4 percent, bringing the annual rate down to 4.6 percent from a 21-year high.
The NZ dollar was a third of a cent softer at $0.8045, but still not far from a one-month peak of $0.8109 set on Monday. The kiwi was further pressured by negative news from the key diary sector. Fonterra cut its forecast for the current season by up to 7 percent because of weaker global prices and the strong currency. Near term kiwi support is now seen at 0.8010, with $0.8098 the first hurdle higher.
The Aussie stood at $1.0470, after climbing more than a full cent to a six-week high of $1.0502 on Monday. Initial resistance is seen at $1.0500 ahead of $1.0570, with support at the 200-day moving average of $1.0439. Against the kiwi, the Aussie hit a 3-1/2 month peak at NZ$1.3017 , before retreating slightly to NZ$1.3003.
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