Kiwi gains against Aussie dollar
The New Zealand dollar has gained against its trans-Tasman counterpart as falling commodity prices and plunging Chinese stock markets weighed more heavily on Australia.
The kiwi rose to 89.59 Australian cents at 5pm in Wellington from 88.97 cents yesterday.
China iron ore futures fell more than eight percent, reaching a record low on the Dalian Commodity Exchange, eroding profitability for one of Australia's biggest exports. A 29 percent slump on the Shanghai Composite Index over the past month has raised concerns about China's ability to buy Australian goods.
"It's more a commodity story that's impacting currencies," said Tim Kelleher, head of institutional FX sales NZ at ASB Institutional in Auckland.
Australian is "a lot more aligned with China and commodities than we are, and I'd imagine the kiwi/Aussie cross can continue to grind up".
Mr Kelleher said currency markets have moved more than equity or interest rate markets, and the kiwi may struggle to push much lower against the US dollar.
It was little changed at 66.41 US cents at 5pm from 66.52 cents at 8am and down from 66.61 cents yesterday.
The kiwi fell to 4.1246 Chinese yuan from 4.1361 yuan yesterday, to 81.04 yen from 81.70 and to 60.33 euro cents from 60.38 cents.
The trade-weighted index was unchanged at 70.29 from the same time yesterday.