The NZ dollar dropped to 63.68 cents to the greenback. Photo / Getty Images
The kiwi is weaker after the greenback got a lift from improving US retail data and as markets keep a close eye on Saudi Arabia after weekend attacks on major oil plants.
The kiwi was trading at 63.68 US cents at 7:55 am in Wellington versus 63.75 late Friday in
New York and 64.04 US cents at 5pm in Wellington.
The US dollar rose after retail sales rose 0.4 per cent on the month in August, versus expectations for a 0.2 per cent increase. Also, the preliminary read of the University of Michigan Sentiment index showed consumer sentiment rebounding to 92.0, above expectations of a 90.8 read and up from 89.8 in August.
The US Federal Reserve is expected to cut its policy rate by another 25 basis points to between 1.75 per cent and 2.00 per cent at this week's meeting but "rising core inflation, still-solid incoming activity data and the temporary thaw in the US-China trade war together support our view that the Fed will then stand pat at the October meeting, before a further gradual slowdown in economic growth prompts one final rate cut in December," according to Capital Economics.
Today, however, markets are likely to be jittery after attacks on Saudi oil plants on Saturday knocked out more than half of the country's output or more than 5 per cent of global supply. Any pullback in global risk appetite will weigh further on the kiwi.
