Slacking Global Growth Makes NZ Dollar Less Appealing

The New Zealand dropped today as worries that global economic growth is slacking deterred Forex market participants from riskier currencies. The kiwi reached the lowest level in more than a month against the US dollar.

Spain’s economy contracted for the fifth consecutive quarter. The poor data followed the credit downgrade of five Spanish regions by Moody’s Investor Service. Europe became a bringer of bad news yet again.

The United States were not helpful either. The Richmond Manufacturing Index dropped to -7 in October from 4 in September. A nasty surprise, considering that analysts have thought it would stay little changed.

NZD/USD dropped from 0.8173 to 0.8116 and NZD/JPY fell from 65.32 to 64.82 as of 21:48 GMT today.

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