The New Zealand dollar followed US stock markets lower after internet search engine Google missed profit estimates and mixed US data eroded investors' appetite for higher-yielding, or riskier, assets.
The kiwi dollar fell to 81.84 US cents after the Google news from 82.02 cents immediately before the announcement and was down from 82.09 cents yesterday at 5pm. The trade-weighted index decreased to 72.84 from 72.93 yesterday.
US corporate earnings continued to set the tone for investors with the Standard & Poor's 500 index falling 0.5 per cent in late trading after Google reported third-quarter profit and sales that missed analysts' estimates. Google's shares were halted after the results were released ahead of time, having shed 8.9 per cent to US$687.92.
"The Australian dollar got hit even harder than the kiwi from a risk perspective," said Stuart Ive, currency strategist at HiFX. "The New Zealand dollars movement today depends on what happened with the Google announcement with support around 81.50 US cents and resistance at 82.30 cents."
Mixed US data also weighed on investor sentiment after more Americans filled for jobless claims than forecast, while separately the Conference Board's gauge of the outlook for the next three to six months increased 0.6 per cent in September after a revised 0.4 per cent drop in August.
