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Hot Topic NBR Focus: GMO
Hot Topic NBR Focus: GMO
1 mins to read

Kiwi dollar falls 1.5USc as risk sentiment 'plunges'


Dollar predicted to drop to 80USc next week.

Niko Kloeten
Fri, 19 Aug 2011

The New Zealand dollar fell more than a cent and a half against the greenback overnight as markets fell and risk aversion returned.

The dollar was the weakest performer, falling from 83.40USc to a low of 81.96USc.

It is currently sitting just above 82USc and could hit 80USc, according to a prominent currency strategist.

Westpac senior market strategist Imre Speizer says risk sentiment “plunged” after an “awful” set of economic data from the US, including the Philadelphia Fed manufacturing survey, existing home sales and jobless claims.

“NZD broke below its wedge-shaped range and is on course for 80USc next week. NZ migration data today could help the bears.”

According to BNZ’s daily currency report, the US dollar, the Japanese yen and the Swiss franc were among the strongest performers, benefiting from “safe haven” flows.

The dollar also declined against the pound, from around 50.60p to 49.70p this morning.

The dollar briefly broke below 50p last week, having previously trading at these levels in mid-June.

The dollar also fell relative to the euro, from around €0.58 last evening to trade just above €0.572 this morning.

“While the Australian dollar was also heavily pressured by weak risk appetite and accumulating global growth concerns, it outperformed the New Zealand dollar,” BNZ says.

“The New Zealand dollar declined from highs above 79.70Ac intra-night, to around 79.10Ac this morning.” 

Niko Kloeten
Fri, 19 Aug 2011
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Kiwi dollar falls 1.5USc as risk sentiment 'plunges'
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