The NZ dollar fell against its major counterparts in the Asian session on Tuesday amid rising risk aversion, as the European Union imposed sanctions on Chinese officials over human rights violations in Xinjiang.

Beijing hit back immediately with punitive measures against several EU officials and entities after coordinated sanctions by western countries over Xinjiang abuses.

The New Zealand government announced a raft of measures to curb housing prices, quashing hopes of a rate hike by the Reserve Bank of New Zealand.

The government will establish $3.8 billion fund to accelerate housing supply over the short to medium term.

The income caps for first home buyers to receive government support would be increased to $95,000 from $85,000 for a single buyer, and to $150,000 from $130,000 for two or more buyers from April 1.

The bright-line test would be extended from five to 10 years with exemptions to incentive new builds.

The kiwi depreciated to a 4-week low of 76.85 against the yen and a 3-month low of 0.7069 against the greenback, off its early highs of 77.99 and 0.7165, respectively. If the kiwi extends decline, 74.00 and 0.68 are possibly seen as its next support levels against the yen and the greenback, respectively.

The kiwi reversed from its early highs of 1.6641 against the euro and 1.0800 against the aussie, dropping to a 1-1/2-month low of 1.6866 and a 5-1/2-month low of 1.0882, respectively. The next possible support for the kiwi is seen around 1.72 against the euro and 1.10 against the aussie.

Looking ahead, U.S. new home sales for February are scheduled for release in the New York session.

At 10:00 am ET, Federal Reserve Chair Jerome Powell will testify before the House Financial Services Committee on the CARES Act, along with Treasury Secretary Janet Yellen, via satellite.