NZ currency falls after Chinese data
The Australian dollar showed a similar fall and the main trigger appears to have been the same: news from China that that country's manufacturing sector is likely to experience slower growth.
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New Zealand’s dollar fell over night after data from China and more Eurozone jitters.
The currency fell from 80.80USc at yesterday evening to 79.33USc in the early hours of this morning. It has more recently rallied to 79.68UScc at 7.20am.
The Australian dollar showed a similar fall and the main trigger appears to have been the same: news from China that that country’s manufacturing sector is likely to experience slower growth.
China’s performance of manufacturing index (PMI) fell to its lowest level since February 2009 yesterday.
The news was accompanied by more uncertainty out of Europe as the Greek government announced the unsettling news that it wanted to hold a referendum on the bailout package announced last week.
The Australian dollar was also affected by the decision of the Reserve Bank of Australia yesterday to cut the official cash rate from 4.75% to 4.5%.
That saw the trans-Tasman cross rate rise for a period: from a starting point of 76.75Ac just before the Reserve Bank of Australia’s announcement, the cross-rate spiked to 77.33Ac before falling to 76.87Ac this morning.
Rob Hosking
Wed, 02 Nov 2011
Wed, 02 Nov 2011
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NZ currency falls after Chinese data
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