The market continues its downside movement as the global economic growth outlook falters, where haven assets advanced after the greenback after the Standard & Poor’s downgraded the US’s long-term credit rating, while the European crisis continues to escalate, damping the demand for higher-yielding investments and accordingly pressuring kiwi.
New Zealand dollar dropped against the greenback as concern over a slowdown in the U.S. economy and the euro-region’s debt crisis sapped demand for higher-yielding assets.
Kiwi also weakened with the selloff in Asian stock markets that declined to the lowest since 2008 on concern the U.S. economy might fall in recession. More losses were seen after the reported rise in Chinese inflation which fueled speculation for further monetary tightening that will dampen growth in New Zealand’s biggest trading partner.
On Wednesday, at 22.4 GMT (Tuesday) the New Zealand economy is to start by the NZ card spending for July, while it inclined by 0.8% in June.
At 14:00 GMT, the U.S. economy will release the wholesale inventories for June, where the previous reading was 1.8% and expected to retreat to 1.0%. The monthly budget statement for July will be released at 18:00 GMT, where the previous reading showed a deficit of $43.1 billion and expected to widen to a deficit of $140.0 billion.