Kiwi slips against Aussie dollar

  • 15/07/2015
Kiwi slips against Aussie dollar

The New Zealand dollar has slipped against its trans-Tasman counterpart after official data showed China's economy grew more than expected in the second quarter.

That has more potential benefit to Australia's economy, which is more exposed to the world's most populous nation.

The kiwi fell to 89.76 Australian cents at 5pm in Wellington from 89.86 cents yesterday.

China's gross domestic product expanded at a 7 percent annual pace in the three months ended June 30, according to official statistics, eclipsing the 6.8 percent growth predicted by economists.

That helped allay some concerns about Australia's export outlook and fuelled demand for the Aussie dollar.

The Chinese data comes ahead of Fonterra's GlobalDairyTrade auction overnight, which will likely show another decline in international whole milk powder prices.

"The Aussie rallied on the better Chinese data, and that's why we've seen the kiwi/Aussie sell-off," said Tim Kelleher, head of institutional FX sales NZ at ASB Institutional in Auckland.

"The kiwi's direction depends on the dairy auction. If we get a poor number and the currency doesn't go below 66.50 (US cents) then we could get a short covering rally."

The kiwi was little changed at 67.03 US cents at 5pm from 67.04 cents at 8am, and up from 66.73 cents yesterday.

The kiwi rose to 60.94 euro cents from 60.64 cents yesterday and to 82.75 yen from 82.41 yen.

The trade-weighted index advanced to 70.87 from 70.68.

NZN