NZ Dollar Falls on Pessimistic Outlook for PMI Reports
The New Zealand dollar retreated today as traders were afraid that tomorrow’s reports would show that manufacturing has slowed in China and the eurozone. Decline of manufacturing means falling demand for New Zealand’s exports and, as a result, currency.
PMI data for Europe and China will be tomorrow and economists are worried that it would show slowdown of manufacturing. The Federal Reserve will release the minutes of its last policy meeting today and investors fear that QE3 would not be mentioned in the minutes. All in all, Forex traders feel less themselves less certain now, but full-blown risk aversion did not come to the market yet.
NZD/USD was down from 0.8108 to 0.8083 and NZD/JPY fell from 64.26 to 64.02 as of 2:36 GMT today. Meanwhile, EUR/NZD edged up from 1.5365 to 1.5406.
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Earlier News About the New Zealand Dollar:
- NZ Dollar Rallies with Milk Prices (2012-08-17)
- NZ Dollar Suffers from Bad Employment Data (2012-08-09)
- NZ Dollar Jumps After S&P Confirms Sovereign Rating (2012-08-03)
- NZ Dollar Remains Strong After RBNZ Holds Interest Rate (2012-07-25)
- NZ Dollar Rises on Positive Data from China (2012-07-24)