
NZ dollar gains on Chinese stock rout
The kiwi dollar has risen to a six-and-a-half week high against the Aussie after a slump in Chinese equities markets.
The kiwi dollar has risen to a six-and-a-half week high against the Aussie after a slump in Chinese equities markets.
The dollar fell after signs of weaker Chinese manufacturing activity dented demand for commodity currencies.
The New Zealand dollar held onto some of its gain after the Reserve Bank yesterday cut the benchmark interest rate.
Banks reduce mortgage rates on the back of Reserve's announcement - and it's likely the OCR will fall further.
Wheeler struck the right note in this morning's official cash rate announcement: appropriately dovish but not alarmist.
The New Zealand dollar has fallen ahead of the Reserve Bank's expected interest rate cut this morning.
The NZ dollar has been trading around 65 US cents, which the Prime Minister has previously called the "Goldilocks" level.
The dollar has since consolidated after a slump in dairy prices and benign inflation stoked expectations of interest rate cuts.
Confidence fell as households turned sour on the economic outlook, although more remain positive rather about their personal situation.
Consumer prices rose as a weaker currency and higher global oil prices lifted the cost of petrol.
The dollar plummeted after whole milk powder fell more than expected in the GlobalDairyTrade auction overnight.
US retail sales slid 0.3pc in in June, the weakest since February, lowering expectations the Fed will hike interest rates in September.
The NZ dollar weakened as Greek agreement turned investor attention to US interest rate hikes, supporting greenback.
The lower kiwi will benefit exporters such as Delegat which counts the US as its largest market.
The dollar weakened as Eurozone leaders stepped up their demands for Greece reforms at meetings over the weekend.
The dollar was little changed as risk sentiment improved following a bounce in Chinese equities and new Greece proposals.
"The Australian dollar is among the worst performing major currencies," a BNZ currency strategist says.
Wall St and European shares fell overnight as fears about the Chinese share fire sale and its economic outlook grows.
The dollar fell as commodity prices dropped on concern about waning demand.
Business confidence has fallen to a three-year low, led by regions like Waikato, Canterbury and Southland particularly exposed to the dairy sector.
The country's business confidence plunged as companies became pessimistic about profitability expectations.
The kiwi dollar was little changed overnight as traders awaited further developments in Greece.