Australia’s dollar erased a decline as data showing a higher-than-estimated growth in China’s imports outweighed concern that the South Pacific nation’s central bank will cut interest rates.
The so-called Aussie earlier touched the weakest in more than three months after the Reserve Bank lowered its economic growth and inflation forecasts. New Zealand’s dollar was set to complete its first weekly decline this year as Asian stocks fell, sapping demand for higher-yielding currencies.
“Today’s data clearly suggests that the Chinese economy is starting to do better, so that should help put a floor under the Aussie,” said Thomas Harr, the head of Asia local markets strategy at Standard Chartered Plc in Singapore. “The domestic economy is not doing that well, but clearly, it is a positive that China continues to improve.”
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