Fed Strength, Chinese Doubt Drag Down Australian Dollar

16 Oct 2024 , 10:13 AM

The Australian and New Zealand dollars fell on Wednesday as pessimism mounted about main trading partner China’s stimulus, while the dollar hovered near two-month highs versus major rivals on bets that US interest rate decreases will be gradual.

New Zealand’s currency was further pulled down by statistics showing falling inflation, leaving the door open for aggressive easing by the country’s central bank.

The Australian dollar sank as far as 0.51% to $0.6669, the lowest since September 12, before changing hands down 0.38% at $0.6678.

The New Zealand dollar fell by 0.69% to $0.6041, a level last reached on August 19. It was last trading 0.53% lower at $0.6051.

Chinese equities sank dramatically on Tuesday and proceeded to fall in the latest session, capping a frantic rise spurred by stimulus hopes that Beijing has yet to realise.

The US dollar index, which measures the currency against six major rivals, remained stable at 103.25, close to Monday’s high of 103.61, a level not seen since August 8.

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