Australia, NZ dlrs weighed down by trade war worries
By Swati Pandey
SYDNEY, Sept 11 (Reuters) - The Australian and New Zealand
dollars hovered around 2-1/2 year lows against the greenback on
Tuesday as investors feared an escalation in the Sino-US trade
The currencies also skidded against the British pound which
surged on hopes of a Brexit deal.
The Australian dollar held at $0.7121 after going
as low as $0.7092 earlier in the day, a level not seen since
The Aussie, a proxy for Chinese assets, is now down almost 9
percent this year, putting it among the world's worst performing
The New Zealand dollar traded at $0.6533 from a
trough of $0.6513, also the lowest since early 2016.
"All eyes this week will be on the showdown between China's
Xi Jinping and Trump and the news coming out of their respective
camps," said James Kniveton, currency strategist at Western
Union Business Solutions.
President Donald Trump warned last week he was ready to slap
tariffs on virtually all Chinese imports into the United States,
threatening duties on another $267 billion of goods on top of
$200 billion in imports primed for levies in coming days.
The moves would escalate Trump's trade war with Beijing over
his demands for major changes in economic, trade and technology
policy. China has threatened retaliation.
"With the Aussie dollar trading somewhat as a proxy for
Chinese growth, it will remain under pressure as long as we see
the rhetoric between Beijing and Washington continue to be
focused on the implementation of tariffs," Kniveton said.
"With August producing a new record in China's trade surplus
with the U.S. it is unlikely we have seen the last of the
Trump’s comments on the issue," Kniveton added.
The antipodean currencies hit multi-year lows against the
euro after European Union's top negotiator
said a deal with Brain could be expected in the next 6-8 weeks.
That sent the pound sharply higher.
Sterling climbed to its highest against the Aussie in 4-1/2
months. On the kiwi, it rose to a more than two-year
(Editing by Kim Coghill)
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