NZ dollar declines
The kiwi dollar dropped to US68.98c as at 0800 on Tuesday in Wellington from US69.18c late Monday. The trade-weighted index fell to 73.29 from 73.44.
The Chicago Board Options Exchange Volatility Index, sometimes known as Wall Street’s fear gauge, fell 1.6 per cent from its highest level in about three weeks overnight while the CRB Index of 19 commonly traded commodities slipped about 0.1 per cent. Prices of dairy products fell for the third straight auction on the GlobalDairyTrade auction last week. Meanwhile, US President Donald Trump tweeted overnight that the US was “getting close” on tax reform.
“The decline in risk appetite has seen commodity currencies under some downward pressure overnight,” BNZ economist Doug Steel said in a note.
“A reduction in risk appetite back to a more normal level represents a key downside risk factor for the NZD.”
On Tuesday, traders will be watching for Australian October business confidence and Chinese retail sales and industrial production figures, while tonight Federal Reserve chair Janet Yellen is scheduled to talk on a European Central Bank panel along with her European, Japanese and British counterparts.
In the morning, the kiwi traded at 52.60 British pence from 52.72p late Monday. It rose to 90.44 Australian cents from A90.27c, fell to 59.11 euro cents from 59.50c and traded at 4.5799 yuan from 4.5977 yuan. It fell to 78.34 yen from 78.61 yen.