By TraderVox.com
Tradervox.com (Dublin) – The Australian dollar dropped from its two-month high as Chinese export data showed worse performance than the economists had projected. The country’s exports and imports were lower than expected advancing speculation of dwindling global economy and damping the demand for Australian dollar. The Aussie also pared last week’s gains after home-loans approvals increased less than economists had predicted. New Zealand’s dollar’s demand was supported by data from manufacturing sector that indicated the nation’s manufacturing volumes increased. The two south pacific currencies jumped to their highest level in three weeks versus the euro after Silvio Berlusconi, the Italian Prime Minister swore to defeat the incumbent leader Mario Monti.
According to Lee Wai Tuck, a Singapore-based currency strategist at Forecast Pte, the Chinese data was a disappointment to the market despite the strong data that had been coming from the country in the recent past. Lee added that yesterday’s data from China has cast a shadow on the economic recovery process. He questioned whether the rebound in economy that has been experience in the last few reports can be sustained and whether Chinese demand for Australian goods will continue. The Australian sovereign bonds dropped as benchmark ten-year yield rose by 0.03 percentage point to 3.15 percent.
Data from China indicated that the country’s exports increased by 2.9 percent in November from a year earlier while the imports remained unchanged and trade surplus was at $19.6 billion. According to the report released by customs administration in Beijing yesterday, the growth in the overseas shipments compares with the 9 percent projected by economists. The Australian dollar dropped by 0.1 percent at the close of day on Friday 8, after increasing by 0.6 percent in the week. The Australian dollar was trading at $1.0476. The currency rose to 81.48 euro cents, which is the strongest since November 20. The New Zealand dollar advanced by 0.1 percent to trade at 83.29 US cents and fetched 68.63 from last week’s 68.68.
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