The New Zealand dollar fell as weaker than expected Chinese manufacturing data raised concerns about the world's second biggest economy, and amid speculation the US Federal Reserve will further reduce its stimulus when it reviews policy next week.
The kiwi fell to 82.74 US cents at 5pm in Wellington from 83.06 cents at 8am and 83.22 cents yesterday. The trade-weighted index declined to 78.61 from 78.86 yesterday.
Chinese manufacturing activity shrank this month, according to the preliminary reading of the Markit/HSBC Purchasing Managers' Index, raising fears about the strength of the nation's economy and weighing on the prospects for New Zealand and Australian trade.
The Chinese data added to weakness in the kiwi dollar after a report by Wall Street Journal Fed watcher Jon Hilsenrath predicted the US central bank would trim another US$10 billion from its monthly asset purchases to US$65 billion at next week's policy meeting.
"The Chinese manufacturing PMI flash from HSBC was a lot worse than expected," said Stuart Ive, senior client adviser at OMF in Wellington. The kiwi may trade between 82.50 US cents and 83.20 cents in the near-term, and will be "very data dependent" with European and US manufacturing figures due, he said.