NZD Drops vs. USD on Risk Aversion, Trims Drop vs. JPY

The New Zealand dollar fell against the US dollar today as risk aversion caused by poor macroeconomic data from China hurt demand for commodity-linked currencies. The kiwi also sank versus the Japanese yen yesterday, but bounced a little today.
The unexpected decline of China’s manufacturing sector hurt high-beta currencies, including New Zealand’s one. China is the biggest trading partner of New Zealand. The crisis in Argentina also harmed the risk sentiment as investors are not sure if they will be able to pull out they capital from the country.
The kiwi (as the New Zealand currency is nicknamed) fell against the dollar, even though the greenback was weak because of economic concerns, and the yen, which was very strong. The NZ dollar trimmed losses against the Japanese currency today, perhaps on speculations that the drop was overdone.
NZD/USD was down from 0.8300 to 0.8287 as of 2:21 GMT today after touching the low of 0.8266. NZD/JPY ticked up to 85.79 following yesterday’s drop from 86.80 to 85.68.

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