Kiwi steady after Chinese shares fall

The kiwi dollar has held up better than the Aussie as Chinese stock prices have dropped amid speculation that reduced lending will sap China's growth.

The New Zealand dollar is little changed after a fall on China's stock market weighed on Australia's currency.

The kiwi traded at 82.76 US cents at 5pm in Wellington from 82.80 cents at 8am and 82.79 cents on Friday in New York.

The kiwi was slightly higher at 92.30 Australian cents from 92.20 cents on Friday in New York.

China's Shanghai Stock Exchange Composite index was down two per cent in afternoon trading, as speculation reduced lending will sap growth in the world's second biggest economy.

The Australian dollar dropped after the decline, and was trading at 89.62 US cents at 5pm in Wellington from 89.74 cents on Friday in New York, as investors mulled the impact on a softer Chinese economy on Australia's imports.

The Australasian countries count China as their biggest export destination, and the trans-Tasman currencies are often used as a proxy by investors to get exposure to China.

"Chinese equity markets are down and there are a few jitters going on in China," said Imre Speizer, market strategist at Westpac Banking Corp in Auckland.

The kiwi was almost unchanged at 60.24 euro cents at 5pm in Wellington from 60.25 cents on Friday in New York, and eased to 84.62 yen from 84.88 yen.

The trade-weighted index was 77.76 from 77.79 on Friday.


2 min read

Published

Updated

Source: AAP


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