The New Zealand dollar rose as the greenback fell from an 11-month high amid weaker-than-expected US data and was little changed against the pound on signs the Bank of England may be closer to hiking interest rates.
The New Zealand dollar fell to its lowest levels in about a month ahead of figures that are expected to show economic growth slowed in the first quarter, undershooting the Reserve Bank's forecast.
The New Zealand dollar is hovering around 69 US cents as trade war jitters continue to ramp up but attention could shift to the domestic arena tomorrow if the first quarter gross domestic product data surprises. The kiwi traded at 69.01 US cents as at 5pm in Wellington versus 68.96 US cents as at 8am in Wellington and 68.83 cents late yesterday. The trade-weighted index fell to 73.33 from 73.49.
The New Zealand dollar fell below 69 US cents after US president Donald Trump said he would target US$200 billion more Chinese products for tariffs and China threatened to retaliate, ramping up concerns about a trade war that could dent global growth.
The New Zealand dollar jumped about a quarter of an Australian cent, extending recent gains against its trans-Tasman counterpart, as investors were spooked by US President Donald Trump escalating his trade war with China.
The New Zealand dollar rose to the highest level in more than six weeks against its Australian counterpart on expectations the Australian economy will be harder hit by any slowing in China's growth.
The New Zealand dollar fell as China responded to US tariffs by imposing its own trade levies on US$34 billion of US goods, unsettling markets and weighing on commodities.
The New Zealand dollar rose against a broadly weaker euro after the European Central Bank said it may not hike interest rates until late 2019 while stronger US retail sales data also helped lift the greenback.
The New Zealand dollar briefly dropped to its lowest level in more than a week before recovering after the Federal Reserve hiked interest rates as expected and projected another two hikes in 2018 and three in 2019.
The New Zealand dollar fell as the historic meeting between US President Donald Trump and North Korean leader Kim Jong Un spurred demand for the greenback as relations between the nations thawed, and ahead of the Federal Reserve's latest policy review.