New Zealand’s dollar surged as much as 1.1 percent versus the U.S. dollar as speculation the Federal Reserve may be reluctant to commit itself to a rate rise next month sapped demand for the greenback.
Australia’s currency rose for the first time in five days, climbing 0.6 percent to 73.15 U.S. cents as of 6:05 a.m. London time, amid signs China’s stock market may be able to pull out of its recent tailspin. The kiwi was at 66.66 U.S. cents, after reaching 66.75.
“It’s been crazy trading today,” said Nizam Idris, Macquarie Bank Ltd.’s head of foreign-exchange and fixed-income strategy in Singapore. “A lot of it is driven by sentiment, and that sentiment is driven by the Chinese stock market. There is nothing on the horizon until the Fed decision on Wednesday for the market to trade on.”