Aussie and New Zealand $ down

11 Jul, 2012

The Australian and New Zealand currencies suffered a modest setback on Tuesday after trade data from China, a major export market for both countries, entrenched worries about slowing Chinese demand.
China imports grew by half the pace analysts had expected, at 6.3 percent last month from a year earlier. Not helping sentiment, imports from Australia fell to US$6.7 billion, from US$8.2 billion in May.
The market sold the Aussie on the back of those data, pushing it as low as $1.0161, versus $1.0199 at its New York close. It last stood at $1.0174, finding some support at the floor of an uptrend channel drawn from the June 1 trough.
Next support is seen at $1.0140, the 20-DMA. The New Zealand dollar was probing support levels at the day's low around $0.7930 in late trade, having held in a relatively tight range with the local top at $0.7969.
Since peaking near $1.0850 earlier in the year, the Aussie has retreated some 6 percent. St. George Bank's chief economist Hans Kunnen said that peak is unlikely to be tested again over the next six months.

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