“Australia’s dollar slid against most of its 16 major counterparts as Asian stocks declined, sapping demand for higher-yielding assets.
New Zealand’s dollar climbed toward a three-month high versus the so-called Aussie after the smaller nation’s central bank said it expects the economy to recover. Losses were limited in the New Zealand and Australian currencies ahead of a Chinese report tomorrow that economists predict will show manufacturing expanded this month in the world’s second-largest economy.
“Risk sentiment is deteriorating on the back of stock declines, weighing on the Australian and New Zealand dollars,” said Kengo Suzuki, a currency strategist in Tokyo at Mizuho Securities Co., a unit of Japan’s third-largest bank by market value.
Australia’s dollar dropped 0.3 percent to $1.0390 as of 3:58 p.m. in Sydney and is little changed this month. New Zealand’s currency, known as the kiwi, fell 0.1 percent to 83.50 U.S. cents, paring a monthly gain to 0.8 percent.
The MSCI Asia Pacific Index (MXAP) of shares lost 0.3 percent, snapping a two-day gain.
The kiwi strengthened 0.1 percent to NZ$1.2442 per Australian dollar. It reached NZ$1.2429 on Jan. 25, the strongest since Oct. 9. Two-year interest-rate swaps in New Zealand fell one basis point to 2.89 percent….”
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