Risk-sensitive Australia, NZ dollars slide amid global stock sell-off
SYDNEY, Nov 18 (Reuters) - The Australian and New Zealand dollars fell on Tuesday as global stocks sold off with investors on edge ahead of artificial intelligence-bellwether Nvidia's results and long-delayed U.S. payrolls data.
The Aussie AUD=D3 slipped 0.2% to $0.6479, after earlier dipping to $0.6466, the lowest level since November 6. It dropped 0.7% overnight to break through the key 65 cent level.
New Zealand's kiwi dollar NZD=D3 eased 0.1% to $0.5648, extending a 0.5% decline from Monday. It faces resistance at the recent high of $0.5690 while support is at $0.5606.
The two Antipodeans are often traded as proxies for risk due to their reliance on commodity exports that are tied to global growth.
Overnight, Wall Street sold off as caution took hold ahead of Nvidia's NVDA.O earnings report on Wednesday, which could allay or aggravate investor worries about sky-high tech share valuations that have sparked global stock sell-offs this month.
Meanwhile, the release of September's U.S. jobs figures on Thursday, following the end of the government shutdown, could influence the Federal Reserve's thinking on a potential interest rate cut next month. Lower borrowing costs support growth and boost stocks, particularly in the highly leveraged tech sector.
Locally, the minutes from the Reserve Bank of Australia's policy meeting this month showed that the central bank could hold interest rates steady for an extended period if data keeps surprising on the upside. The board also weighed the possibility that current policy settings might no longer be restrictive.
Prashant Newnaha, senior Asia-Pacific rates strategist at TD Securities, expects the Aussie dollar to rise to 70 cents by the end of next year after changing his call to no more rate cuts from the RBA.
"AUD is expected to stay in the pole position for further gains against the USD in 2026. US-China trade tensions have eased after Trump-Xi talks with the possibility of a trade deal in April while the hawkish RBA stance should support the AUD," said Newnaha.
The Aussie often tracks the economic fortunes of China, Australia's largest trading partner.
Swaps imply just a 50% probability that the RBA could deliver one last rate cut in May next year.
By contrast, another quarter-point rate cut from the Reserve Bank of New Zealand later this month has been fully priced in. 0#NZDIRPR
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