Australia’s dollar fell against all of its 16 major peers amid concern China’s economic growth will slow, reducing demand for the smaller nation’s commodities.
The Australian and New Zealand dollars were poised for their first monthly losses this year after Chinese data showed earnings dropped at industrial companies. The so-called Aussie slid as much as 0.5 percent after the Wall Street Journal’s MarketWatch.com reported Dow Chemical Co.’s Chief Executive Officer Andrew Liveris sees signs Australia’s economy may encounter difficulties.
“China is an important trading partner for Australia and New Zealand,” said Kengo Suzuki, a foreign-exchange strategist in Tokyo at Mizuho Securities Co., a unit of Japan’s third- largest bank by market value. A slowdown in China “will be a blow” to the Australian and New Zealand currencies.
Australia’s dollar declined 0.4 percent to $1.0489 at 11:26 a.m. in New York. It lost 0.1 percent to 87.14 yen. The New Zealand dollar, known as the kiwi, slipped 0.2 percent to 82.13 U.S. cents, while it rose 0.1 percent to 68.21 yen.
The Aussie has lost 2.4 percent this month while the New Zealand dollar has declined 1.6 percent.
Chinese industrial companies’ net income decreased 5.2 percent from a year earlier in the first two months of 2012, the nation’s statistics bureau said today. That compared with a 34.3 percent gain in the same period last year.
Dependence on China
China’s statistics bureau and logistics federation are scheduled to release their purchasing managers’ index for manufacturing on April 1. The nation is Australia’s largest overseas market and New Zealand’s second-biggest export destination.
Australia’s growth trajectory is unsustainable and the country is too dependent on China, Dow Chemical’s Liveris said today in Sydney, according to MarketWatch.com.
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