Australia’s dollar fell from the highest in more than two months after Chinese exports and imports trailed economists’ forecasts, damping the South Pacific nation’s trade prospects.
The so-called Aussie snapped gains from last week after the nation’s home loans grew less than economists estimated. Demand for New Zealand’s kiwi dollar was supported after data showed the nation’s manufacturing volumes rose. The South Pacific currencies touched the highest in more than three weeks against the euro after former Italian Prime Minister Silvio Berlusconi pledged to topple incumbent leader Mario Monti.
“There was disappointment on the Chinese trade data,” Lee Wai Tuck, a currency strategist at Forecast Pte in Singapore. “We have seen strong data out of China in recent sessions, but with today’s weaker data would put some question marks as to whether the rebound in the economy is sustainable and if China’s demand for Australian goods will continue.”
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