Diving Asian equities, concerns of a slow-down in Chinese growth and heavy risk aversion set the stage for the New Zealand dollar's poor performance over the past day.However, after slumping to 70.44USc at 4.40am today, the kiwi rebounded to 70.89USc at 9
Diving Asian equities, concerns of a slow-down in Chinese growth and heavy risk aversion set the stage for the New Zealand dollar's poor performance over the past day.
However, after slumping to 70.44USc at 4.40am today, the kiwi rebounded to 70.89USc at 9am.
"While worries about the global outlook have kept NZD/USD fragile so far this week, we continue to think that dips below 0.7000 will be short-lived," BNZ senior strategist Danica Hampton said.
"China's efforts to curb bank lending are aimed at preventing the economy from overheating, but investors fear slower Asian growth could derail the global recovery. Asian equities fell heavily – the Nikkei fell 1.8% and the Shanghai index fell 2.4%.
"Risk aversion saw investors ditched growth sensitive currencies like NZD and AUD in favour of the relative safety of the USD and the JPY (despite the concerns about Japan's credit rating)."
Against other currencies, the kiwi also lost ground, slipping to 78.76Ac, from 78.88Ac at 5pm yesterday.
The kiwi was at €0.5036 from yesterday's €0.5040 against the euro and at ¥63.62 from ¥63.96 yesterday.
Small gains were made against the pound, with the kiwi reaching 43.92p from yesterday's 43.84p.
The trade-weighted index was 64.78, from 64.95 at 5pm yesterday.
