The Australian and New Zealand dollars slid, set for the first declines in four days, after a private report showed a contraction in China’s manufacturing industry unexpectedly deepened.
Australia’s three-year debt yields jumped following data that showed the nation’s underlying inflation accelerated last quarter, damping expectations the Reserve Bank will cut borrowing costs as early as next month. The kiwi earlier touched a one-month high after a report that New Zealand’s trade surplus widened in June.
“On the day, we seem to be at the low ends of the range with China-related concerns continuing to weigh on the Aussie,” said Callum Henderson, the global head of currency research at Standard Chartered Plc in Singapore. “On a six- to nine-month view, we continue to expect the Australian dollar to be lower.”
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.