New Zealand Dollar Down Late as Aussie Weighs

 
   By Lucy Craymer 
 

        WELLINGTON, New Zealand--The New Zealand dollar is lower Wednesday, under pressure having been dragged down by the Australian dollar's breach of support at US$0.8200.
        "Markets had been quite reluctant to break through that (AUD/USD) level for a few days and now it is busted so that has dragged us lower on broad-based risk fears," said ANZ senior FX manager Sam Tuck.
        Tumbling oil prices continue to fuel investors' concerns about global growth, weighing on currencies with heavy exposure to commodities through exports, such as the Australian and New Zealand dollars.
        Earlier Wednesday Statistics New Zealand said the third-quarter current account deficit was its widest since 2008, when the country was in the midst of a recession.
        The current account deficit totaled NZ$5.0 billion in the three months ended Sep. 30, compared with a revised surplus of NZ$1.1 billion in the second quarter, Statistics New Zealand said. Economists in a poll by The Wall Street Journal had expected a deficit of NZ$5.5 billion.
        ASB economist Christina Leung said the surprise largely reflected a smaller-than-expected income deficit, as dividends paid by New Zealand companies to overseas portfolio investors declined, while the goods deficit was also smaller than expected.
        Ms. Leung said there were no implications from the current-account release for third-quarter growth data due Thursday.
        In late Wellington trading Wednesday, the New Zealand dollar was at US$0.774 versus US$0.7752 late Tuesday. It was at A$0.9488 compared with A$0.9414 late Tuesday.
        Mr. Tuck said overnight movements in the Russian ruble trading will be very important for sentiment as will moves in other emerging-market currencies with the next key event being the Federal Open Monetary Committee meeting.
        "No one will really want to be running into the FOMC holding a position, so it will probably be a continuation of position liquidation," he said.
        Write to Lucy Craymer at lucy.craymer@wsj.com, @lucy_craymer
        (END) Dow Jones Newswires

        December 17, 2014 00:11 ET (05:11 GMT)

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