The New Zealand dollar slumped today as stocks retreated. The decline of global equities was caused by the announcement that China decreased its growth target for this year.
China was viewed for some time as the main driver of the global economic recovery, therefore the signs of slowdown in the nation’s economy had a very negative impact on market sentiment. The MSCI Asia Pacific Index of stocks declined 0.8 percent, while the Standard & Poorâs 500 Index lost 0.3 percent. The currency of New Zealand is particularly vulnerable to the negative influence of slower economic growth in the Asian country as China is the South Pacific nation’s second biggest trading partner.
NZD/USD fell from 0.8305 to 0.8215 and NZD/JPY dropped from 67.87 to 66.81 as of 17:36 GMT today.
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