Blackberry Posts Loss as Revenue Misses Estimates
Australia Dollar Drops Versus U.S. Peer on China Factory Slump
The Australian dollar fell against its U.S. peer after Chinese manufacturing declined for an 11th month, clouding the prospects for the nation’s resource exports.
The Aussie dropped against the majority of its 16 most- traded counterparts as euro-area services and manufacturing output fell to a 39-month low in September. The New Zealand dollar advanced versus its U.S. peer as the country’s economic growth slowed less than forecast last quarter amid stronger farm output and construction.
“The direction of the news flow is once again turning negative,” Samarjit Shankar, a managing director for the foreign-exchange group in Boston at Bank of New York Mellon, said in a telephone interview. “The main drivers remain in place with risk aversion in market participants coming back to reality after the injection of liquidity from the Federal Reserve.”
Australia’s currency depreciated 0.4 percent to $1.0436 yesterday in New York after earlier falling as much as 1.1 percent, its biggest decline since July 23. It decreased 0.6 percent to 81.66 yen.
New Zealand’s dollar, nicknamed the kiwi, rose 0.3 percent versus the greenback to 82.91 U.S. cents after earlier falling as much as 0.7 percent. The kiwi gained 0.1 percent to 64.87 yen.
The Aussie dropped as a preliminary reading of a Chinese manufacturing survey was 47.8 for a China purchasing managers’ index yesterday by HSBC Holdings Plc and Markit Economics, compared with a final level of 47.6 last month. A reading above 50 indicates expansion.
The kiwi rose against all of its major counterparts as gross domestic product increased 0.6 percent last quarter, exceeding the central bank’s 0.4 percent projection.
New Zealand’s dollar has strengthened 4.3 percent this year, the biggest increase among the 10 developed-nation currencies on the Bloomberg Correlation-Weighted Indexes. The Aussie has fallen 0.5 percent and the greenback is down 2.9 percent.
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