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The NZD is highly exposed to sentiment regarding the China-U.S. trade war.
The New Zealand dollar fell to its lowest level against the pound since before the UK's Brexit referendum as a run of underperformance extends.
The pound to New Zealand dollar exchange rate rose to 2.3434 on Tuesday, a level last seen in October 2015, after China sanctioned the U.S. units of Hanwha Ocean, one of the world's biggest shipbuilders.
his has no direct impact on New Zealand; however, the New Zealand Dollar is sensitive to sentiment regarding the Chinese economic outlook.
Traders are betting that an escalation in the U.S.-China trade war is bad for the economic growth prospects of New Zealand's biggest export destination.
China imposed the new restrictions on Hanwha Ocean in an apparent bid to strengthen its hand ahead of a potential new trade settlement with the U.S.
It is hoped that U.S. President Donald Trump and China's Xi Jinping will agree a new deal at the end of October at the APAC conference in South Korea.
More jockeying is expected, with both sides clearly seeking to give themselves as much leverage ahead of a deal as possible.
This raises the odds of further negative trade-related headlines, which will keep the NZD offered.