Aussie, Kiwi Fall on China’s Declining Industrial ProfitsJoseph Ciolli
The Australian dollar touched its lowest level in a month against its U.S. counterpart, extending a two-week decline, after declining industrial profits in China raised concern that global growth is waning.
The so-called Aussie weakened versus most of its 16 major counterparts yesterday after a report showed profits for industrial companies in China, Australia’s biggest trading partner, fell 5.4 percent in July from a year earlier. New Zealand’s dollar also fell against most major peers. China is New Zealand’s second-largest export market.
The Aussie fell 0.3 percent to $1.0375 in New York yesterday, after earlier gaining as much as 0.3 percent. The currency declined 0.2 percent to 81.71 yen after appreciating 0.3 percent.
New Zealand’s dollar, known as the kiwi, decreased 0.3 percent to 80.86 U.S. cents after gaining as much as 0.3 percent earlier. The kiwi fell 0.2 percent to 63.73 yen.
The Standard & Poor’s GSCI Index of 24 raw materials decreased 0.5 percent as commodities fell for a third day. The S&P 500 Index fell 0.1 percent.
The Aussie may extend losses to $1.017 if it declines below so-called support at $1.0342, according to Skandinaviska Enskilda Banken AB, citing trading patterns.
Australia’s currency closed last week below a previous level of support at $1.041, before briefly rallying yesterday, though not enough to indicate it won’t weaken further, strategists Anders Soderberg and Dag Muller in Stockholm wrote in an e-mail to clients.
To continue reading this article you must be a Bloomberg Professional Service Subscriber.
If you believe that you may have received this message in error please let us know.