The Australian and New Zealand dollars skidded on Monday as worries about growth in key export market China added to speculation about the Reserve Bank of Australia (RBA) cutting rates soon. The Aussie dropped around 1 percent against the US dollar, euro and yen. It fell to $0.7601, pulling closer to a six-year trough of $0.7534 touched early this month. Immediate support was seen at $0.7570.
The euro bounced to A$1.3939, from Friday's close of A$1.3781. Resistance was found at A$1.4030.
Data showed China exports tumbled 15 percent in March, missing forecasts of a rise of 12 percent. The surprise drop revived worries about the Asian giant's slowing economy and encouraged investors to sell the Aussie.
"If Chinese exports are to trend lower, it is something quite unexpected," said David De Garis, a senior economist at National Australia Bank.
"You have to be careful with Chinese numbers, but it's not positive. It suggests economic weakness," he said.
Also undermining sentiment was a downgrade in the World Bank's 2015 growth forecasts for developing East Asia and China. It warned of 'significant' risks from global uncertainties.
The combination of Chinese data and predictions for slower growth only reinforced expectations the RBA will ease again, having skipped the chance to cut rates last week. It last cut rates to a record low 2.25 percent in February.
Swap markets imply a 3-in-4 chance of a move in May, while debt markets are fully priced for an easing by June.
Not helping the Aussie was a significant increase in short positions by the speculative community. Data from the Commodity Futures Trading Commission showed net Aussie shorts stood at more than 40,000 contracts, from around 24,000 the week before.
The New Zealand dollar fell three-quarters of a cent to $0.7484 after the Chinese data. Support was found around $0.7457. Against the kiwi, the euro clawed back to around NZ$1.4151, having slid to a life-time low of NZ$1.4040 on Friday.
The kiwi is facing more downside risks if global dairy prices continue to fall at a fortnightly auction later in the week, as it would further shave export incomes from the country's biggest trading product.
New Zealand government bonds rose with yields down around 2.5 to 3 basis points along the curve.
Australian government bond futures edged up, with the three-year bond contract 3 ticks higher at 98.290. The 10-year contract added 3.5 ticks to 97.6700.
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