The South Pacific nation’s currency, known as the Aussie, fell to a three-week low after local data showed the construction industry shrank at a faster pace in March than the prior month. The currency declined to the weakest since February against New Zealand’s dollar.
“I see the Aussie going lower,” said Imre Speizer, a strategist in Auckland at Westpac Banking Corp., Australia’s second-biggest lender. “Global risk aversion” is pushing Australian government yields lower, he said.
The rate on Australia’s current 10-year note declined eight basis points to 3.23 percent as of 10:38 a.m. in Sydney after touching 3.18 percent, the lowest since Dec. 12.
The Australian dollar slid to $1.0348, the weakest since March 18, before trading at $1.0372, down 0.1 percent from the close on April 5. It lost as much as 0.6 percent to NZ$1.2242, a level unseen since Feb. 20. New Zealand’s currency, nicknamed the kiwi, fell 0.2 percent to 84.16 U.S. cents.
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