Australian Dollar Touches One-Month High Versus Yen; Kiwi Falls
Australia’s dollar touched the strongest level in a month versus the Japanese currency after Chinese retail sales were higher than forecast.
New Zealand’s dollar weakened against most of its major counterparts as global equity prices fell and before the central bank reports credit-card spending for September. The South Pacific currencies were buoyed after data showed China’s industrial production accelerated in September, boosting prospects for exports.
“The data supports our long-held view of a soft landing in China, which is supportive of currencies like the Canadian dollar and Australian dollar,” Camilla Sutton, head of currency strategy at Bank of Nova Scotia (BNS) in Toronto, wrote to clients yesterday.
The Australian currency rose as much as 0.7 percent to 82.522 yen, the highest since Sept. 19, before trading 0.3 percent higher at 82.174 yesterday in New York. It fell 0.2 percent to $1.0366.
New Zealand’s currency declined 0.4 percent to 81.84 U.S. cents and was little changed at 64.88 yen.
The Standard & Poor’s 500 Index fell 0.2 percent and the MSCI World Index was little changed.
China’s gross domestic product expanded 7.4 percent during the third quarter from a year earlier, the National Bureau of Statistics said in Beijing yesterday. That matched the median estimate in a Bloomberg News survey of 43 economists.
Separate reports showed industrial production increased 9.2 percent in September from a year earlier, retail sales advanced 14.2 percent and fixed-asset investment excluding rural households rose 20.5 percent.
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