How the kiwi dollar reacted to shock poll

/ File photo

The New Zealand dollar dropped on the back of the shock result that saw Labour skyrocket to 43 per cent in the 1News Colmar Brunton poll.

Shortly after 6pm the kiwi began to fall quickly to a low for the day of US71.46c from US71.73c before the poll was released.

It later regained some territory and was trading at US71.58c around 8:45pm.
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The kiwi had already started to weaken overnight after the US private payrolls rose by 237,000 in August, beating estimates of a 185,000 gain and second-quarter gross domestic product in the US rose at a revised 3 per cent annual rate against expectations of a 2.7 per cent gain.

It softened on news that business confidence dipped in August versus July and pricing intentions dropped in the monthly ANZ survey.

"The trend decline in the NZ dollar got another boost from those more interested in the inflation story than the growth story," said BNZ head of research Stephen Toplis.

News that Australian business investment rose in the second quarter while companies upgraded their spending plans for the year ahead bolstered the Aussie, weighing further on the kiwi, said Kelleher.

The kiwi was trading at A90.71c from 90.91c Wednesday.

Kelleher said the kiwi might have more downside to come as Europe opens later in the global trading day as "we are probably doing to see more (US) dollar strength".

He also said some election uncertainty may be creeping into the market three weeks ahead of the vote.

The kiwi fell to 79.22 yen from 79.69 yen and to 4.7284 yuan from 4.7785 yuan. It slipped to 60.34 euro cents from 60.62 cents and declined to 55.44 British pence from 56.14 pence.