Aussie Slides With Kiwi as Chinese Stocks Tumble for Second Day
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The Australian and New Zealand dollars declined against their major peers as stocks tumbled for a second day in China, the biggest trading partner of both South Pacific nations.
The currencies declined toward six-year lows versus the dollar reached earlier this month as risks to Chinese growth raised concern the central banks of Australia and New Zealand could be forced to continue to reduce interest rates. Swaps traders see 20 basis points in rate cuts by the Reserve Bank of Australia over the next 12 months, compared with 38 basis points of reductions by its New Zealand counterpart, according to Credit Suisse Group AG indexes.