Australia, N.Z. Dollars Fall Before Chinese Manufacturing Data

The Australian and New Zealand dollars weakened against their U.S. peer as risk appetite fell before a private report that’s forecast to show Chinese manufacturing is strengthening.

The Aussie dollar declined versus the majority of its most-traded counterparts as U.S. stocks dropped amid concern a budget standoff will push the world’s biggest economy into recession. The New Zealand dollar, nicknamed the kiwi, fell versus the greenback as commodities declined. A Bloomberg survey forecast a report will show China’s purchasing managers’ index rose to 50.8 in December from 50.5 the prior month. A reading above 50 indicates expansion. China is Australia’s biggest trading partner and New Zealand’s second-largest export market.