The currencies of Australia and New Zealand retreated following gains of at least 1 percent Friday, after disappointing trade data in China deepened concern that demand for commodities will weaken in their biggest export market.
Australia’s dollar had the steepest decline among major currencies against the greenback on Monday, after reports in China over the weekend showed exports shrank five times more than economists estimated and producer prices fell by the most in almost six years. The Aussie and kiwi had dropped last month as commodities plunged and bets increased that the Federal Reserve will raise interest rates next month.
Australia’s dollar declined 0.3 percent to 73.96 U.S. cents as of 11:42 a.m. in Tokyo on Monday. The currency rallied 1.5 percent last week after hitting a six-year low of 72.35 on July 31. New Zealand’s currency depreciated 0.1 percent to 66.17 cents, after advancing 1.1 percent on Friday.
China’s overseas shipments fell 8.3 percent from a year earlier in dollar terms, the customs administration said Aug. 8. The reading was well below the estimate of a 1.5 percent decline in a Bloomberg survey. The country’s producer-price index fell 5.4 percent year-on-year last month, the National Bureau of Statistics said the following day.