Aussie and Kiwi Tumble as Stocks Fall

By TraderVox.com

Tradervox.com (Dublin) – The Australian and New Zealand dollars fell from their two-month high registered yesterday as stocks in the world market fell. The demand for riskier assets reduced as investors await the ECB and BOE rate decisions scheduled to be announced later today. The kiwi reversed it two-day advance against the yen before reports that may indicate a drop in the German Factory orders. Further, the south pacific currencies dropped as economists predict the least advance in US payrolls in more than two years. However, investors will also be waiting to hear what Australian Treasurer Wayne Swan has to say about trading the Chinese currency and the Aussie next week.

Explaining the decline, Robert Rennie, the Chief Currency Strategist in Sydney at Westpac Banking Corp said that the issues affecting global economy will keep the Australian dollar on the low for the short term. In addition, the kiwi and Aussie fell as MSCI Asia Pacific Index fell by 0.2 percent after gaining for the last six days. Speculation that factory orders in Germany may have declined by 6 percent and the fears that US employers added only 90,000 employees last month have contributed to the fall of the two south pacific dollars.

The Australian dollar fell by 0.1 percent against the US dollar to trade at $1.0264 at the close of trading in Sydney after it had touched its highest since May 3 yesterday of $1.0320. The Aussie dropped by 0.3 percent against the yen to trade at 81.87 yen. Likewise, the New Zealand dollar dropped by 0.1 percent against the US dollar to trade at 80.30 US cents and declined by 0.2 percent against the yen to exchange at 64.06 yen.

Australian treasurer Wayne Swan said that the government is taking measures to enhance yuan-Aussie trade as China is the country’s larger trading partner.

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