Sunday, September 23, 2012

Aussie, N.Z. Dollars Fall on Europe Stalemate, Before RBA

The Australian and New Zealand dollars declined on speculation disagreement among the euro region’s leaders on debt-crisis solutions is curbing prospects for growth, damping demand for higher-yielding assets.
The so-called Aussie and kiwi declined against most of their major peers before data today forecast to show German business confidence stayed near the lowest in more than two years. Greece and representatives of its so-called troika of international creditors agreed to take a break from inconclusive aid talks. The Reserve Bank ofAustralia will hold a policy meeting next week.
“What could move markets would be some friction news on the Greek-troika inspections,” said Imre Speizer, a strategist in Auckland at Westpac Banking Corp. (WBC), Australia’s second-largest lender. “Aussie is seeing a bit of slippage on the possibility of the RBA cutting rates as early as October.”
The Australian dollar fell 0.4 percent to $1.0420 as of 3:03 p.m. in Sydney. It declined 0.5 percent to 81.33 yen. The New Zealand dollar dropped 0.6 percent to 82.38 U.S. cents and lost 0.8 percent to 64.29 yen.
The MSCI Asia Pacific Index of regional shares slid 0.4 percent.
The Ifo institute will probably say its German business climate index, based on a survey of 7,000 executives, was at 102.5 this month from 102.3 in August, according to the median estimate of economists surveyed by Bloomberg News before the data today. August’s reading was the lowest since March 2010.

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