The New Zealand dollar skidded on Thursday after a gauge of business confidence fell again in August to hit a decade low, while the Australian currency eased on disappointing capital expenditure data. The kiwi snapped four straight sessions of gains to stumble 0.7 percent to $0.6659, the weakest since August 24. It was last down 0.6 percent at $0.6669.
Across the Tasman Sea, the Australian dollar slipped about a third of a US cent to $0.7276 after official figures showed business investment surprisingly fell 2.5 percent. Analysts had expected a 0.6 percent gain.
New Zealand government bonds gained, sending yields about 4-5 basis point lower across the curve. Australian government bond futures were mixed, with the three-year bond contract unchanged at 97.980. The 10-year contract eased 2 ticks to 97.430. Traders feared a slump in business sentiment would hurt hirings and spending which would in-turn dampen New Zealand's economic growth.
A net 50.3 percent of survey respondents expected economic conditions to deteriorate in the year ahead, the ANZ Bank survey showed, the most pessimistic result since April 2008 and a decline from July's 44.9 percent.
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