TOKYOLONDON, Oct 9 Reuters The New Zealand dollar slumped on Wednesday after the country39;s central bank cut interest rates by 50 basis points, while the U.S. dollar nudged up against most currencies and hit a new two month high on a basket of peers.

The kiwi tumbled 0.8 on the U.S. dollar to 0.6086 and hit its lowest in nearly two months after the Reserve Bank of New Zealand39;s move which was accompanied by clear dovish messaging suggesting more rate reductions were on the cards in the coming months.

It was down on the crosses too and the Australian dollar rose 0.6 on its antipodean peer to NZ1.1047.

We see mounting nearterm headwinds for the New Zealand dollar against the U.S. dollar including hawkish repricing for the Fed, potential geopolitical escalation, derisking ahead of the US election, exhausted momentum in terms of trade, and now a moredovishthanexpected RBNZ, said Lenny Jin, Global FX Strategist at HSBC.

Potentially strong fiscal stimulus from China is an upside risk but the Australian dollar is set to benefit more.

China39;s finance ministry on Wednesday called a press conference for Saturday on fiscal policy, raising expectations of stimulus, a day after a news conference from the state planner the National Development and Reform Commission disappointed markets by yielding no major new stimulus details.

That did little for the Aussie, down 0.3 on the U.S. dollar at 0.6727.

Investors will also be watching the release of minutes of the Federal…