The Australia and NZ dollars weakened against the other major currencies in the Asian session on Monday after data showed that Chinese imports tumbled more than economists expected in November.
As China is the top export destination of Australia and New Zealand, the unexpected fall in Chinese imports hurt the sentiment.
Data from the Customs Office showed that Chinese imports tumbled an annual 6.7 percent in November versus forecasts for 4.0 percent after gaining 4.6 percent a month earlier.
China posted a merchandise trade surplus of $54.47 billion in November. That was well above forecasts for $41.00 billion following the $45.41 billion surplus in October. Exports added 4.7 percent on year, shy of forecasts for 9.0 percent following the 11.6 percent surge in the previous month.
Last Friday, the Australia and NZ dollars showed mixed trend against its major rivals. While the aussie and the kiwi fell against the U.S. dollar, they rose against the yen. Against the Euro, both the aussie and kiwi held steady.
Against the U.S. dollar, the Australia and NZ dollars extended their fall from Friday's New York session. On Friday, the buck was ably supported by the monthly U.S. non-farm payrolls report.
In the Asian trading today, the Australian dollar and the NZ dollar fell to a 4-year low of 0.8280 and a a 2-year low of 0.7641 against the U.S. dollar from last week's closing quotes of 0.8317 and 0.7704, respectively. The aussie is likely to find support near 0.81 against the greenback and the kiwi is likely to find support near the 0.74 area.
The aussie fell to nearly a 1-year low of 0.9474 against the Canadian dollar and a 7-month low of 1.4835 against the euro, from last week's closing quotes of 0.9511 and 1.4746, respectively. On the downside, 0.93 against the loonie and 1.49 against the euro are seen as the next support levels for the aussie.
Against the yen, the aussie edged down to 100.61 from last week's closing quote of 101.05. If the aussie extends its downtrend, it is likely to find support near the 98.70 region.
The NZ dollar fell to nearly a 4-week low of 1.6079 against the euro and a 4-day low of 92.87 against the yen, from last week's closing quote of 1.5919 and 93.67, respectively. The kiwi may test support near 91.66 against the yen and 1.63 against the euro.
Looking ahead, German industrial production for October is due in the Asian session.
In the European session, Swiss retail sales data for October and inflation report for November and Eurozone Sentix investor confidence index for December are due to be released.
In the New York session, Canada housing starts data for November and building permits for October are due to be released.
At 8:00 am ET, eurozone finance ministers are due to meet to discuss the 2015 draft budgets in Brussels.
At 12:30 pm ET, Federal Reserve bank of Atlanta President Dennis Lockhart will deliver a speech on the economic outlook and monetary policy before the Council for Quality Growth in Atlanta.
by RTT Staff Writer
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