The Australian and New Zealand dollars slumped on Wednesday as skepticism grew about top trading partner China's stimulus, while the greenback hovered near two-month peaks versus major peers on wagers U.S. interest rate cuts will be gradual.
The Australian and New Zealand dollars slumped on Wednesday as skepticism grew about top trading partner China's stimulus, while the greenback hovered near two-month peaks versus major peers on wagers U.S. interest rate cuts will be gradual.
New Zealand's currency was weighed down further by data showing cooling inflation, keeping the door open for aggressive easing by the nation's central bank.
The Aussie dropped as much as 0.51% to $0.6669, the lowest since Sept. 12, before changing hands down 0.38% at $0.6678 as of 0133 GMT.
The New Zealand dollar sank as much as 0.69% to $0.6041, a level last seen on Aug. 19. It was last trading 0.53% weaker at $0.6051.
"There's definitely been some building skepticism about China's real commitment to the kind of fiscal support that would be seen as really cathartic," and that is pulling down the Australian and New Zealand currencies this week, said Ray Attrill, head of FX strategy at National Australia Bank.
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