14 Nov 2017 Risk Appetite Reduced, New Zealand Dollar Inflamed New Zealand's dollar fell back below 69 US cents after risk appetite (investor appetite for riskier assets) and global commodity prices declined as well as growing optimism around US tax reforms. The kiwi dollar dropped to 68.73 US cents ($ 0.6873) in the morning in Wellington from 69.18 cents yesterday. The New Zealand dollar trade-weighted index fell to 73.29 from 73.44. The Chicago Board Options Volatility Index (VIX), also known as the Wall Street "fear" indicator, fell 1.6 percent from a three-week high overnight. The CRB Index, which measures the performance of the 19 most traded commodities, slipped about 0.1 percent. Dairy product prices fell for the third consecutive auction at a GlobalDairyTrade auction last week. Meanwhile, the US dollar was also supported by US President Donald Trump's tweet last night that the US is "getting closer" to tax reform. "The decline in risk appetite has brought commodity currencies under pressure, down overnight," said Doug Steel, an economist at Bank of New Zealand, in a note. "Decreasing risk appetite back to more normal levels is a major downside risk factor for NZD," Steel said. Steel said there was support for the kiwi dollar at 68.20 US cents to 68.40 cents ($ 0.6820 - $ 0.6840) and resistance at around 70.50 cents ($ 0.7050). Traders also appear to react negatively to Australia's October Australian business confidence index and China's retail sales and industrial production figures that are generally less supportive for the Australian and Chinese economies, both of which are New Zealand's largest trading partners. Today traders will also monitor New York Federal Reserve Chair Janet Yellen is scheduled to speak at the European Central Bank (ECB) panel with colleagues from Europe, Japan and the UK. The kiwi traded at 52.60 US cents from 52.72 pence at the end of yesterday's session. The kiwi rose to 90.44 Australian cents from 90.27 cents, down to 59.11 euro cents from 59.50 cents and trading at 4.5799 yuan from 4.5977 yuan. New Zealand's dollar fell to 78.34 yen from 78.61 yen.