NZ dollar falls
Wed, 05 Sep 2012 9:28a.m.
The New Zealand dollar fell after US manufacturing activity shrank, stoking concerns global economic growth has stalled.
The New Zealand dollar fell as low as 79.21 US cents overnight, the lowest since July 25, and traded at 79.36 cents at 8am, down from 79.74 cents yesterday.
The kiwi held near a two-month low at 63.16 euro cents from 63.22 cents.
US manufacturing figures showed activity shrank for a third straight month, heightening fears of a global slowdown after industrial production in China and Europe showed similar declines.
That comes ahead of Thursday's ECB monetary policy review, where president Mario Draghi will consider buying bonds with maturities of up to three years as he seeks to do "whatever it takes" to safeguard the euro.
More weakness in the US labour market may be enough to spur the Federal Reserve into announcing a third round of quantitative easing of monetary policy (Q3).
"You would have thought the US data would have added to the signs of further quantitative easing. Instead we are waiting to hear what the ECB does and we are waiting for non-farm payrolls because that will be the lynchpin in Q3 thoughts," said Stuart Ive, currency strategist at HiFX.
The New Zealand dollar was little changed at 77.59 Australian cents from 77.65 cents on Tuesday, when the Reserve Bank of Australia kept the target cash rate on hold at 3.5 percent and said capital spending in the resources sector is keeping the economy growing.
The kiwi fell to 62.23 yen 62.47 yen and the trade weighted index decreased to 71.48 from 71.67.
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9/09/2012 10:31:30 a.m.
Seems crazy but then again so is the fractional reserve banking system. It will collapse its only a mater of time.How will the US pay its national debt...It cant. Solution the Amerro dollar enslaving Canada and Mexico diluting their debit by effectivly doubleing their population.. and guess what, it just buys time, the clock is ticking on the monetary system we need to look for an alternative and fast.
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