Australian And New Zealand Dollars Extend Slide As China Cuts Growth Target

Australian And New Zealand Dollars Extend Slide As China Cuts Growth Target




In early European deals on Monday, the Australian and New Zealand dollars are extending their decline against other major currencies as investors sold higher-yielding assets after China cut its target for 2012 economic growth.
China lowered its GDP growth target to 7.5 percent in 2012, the least since 2004, citing high inflation and the gloomy global economic scenario, according to a transcript of Premier Wen Jiabao's address at the annual meeting of the National People's Congress in Beijing.
The New Zealand dollar that closed Friday's trading at 0.8295 against the US dollar is now worth 0.8234. This set the lowest point for the kiwi since February 01. On the downside, 0.820 is seen as the next target level for the NZ dollar.
The New Zealand dollar is currently trading at a 5-day low of 1.6026 against the euro and a 1-week low of 66.96 against the yen, compared to Friday's close of 1.5920 and 67.84, respectively. If the kiwi weakens further, it may likely target 66.5 against the yen and 1.610 against the euro.
Against the Australian dollar, the New Zealand dollar is trading near a 6-week low of 1.2988. The next downside target level for the kiwi is seen at 1.30. At last week's close, the aussie-kiwi pair was quoted at 1.2946.
The Australian dollar also declined, hitting a 5-day low of 86.80 against the yen and a 1-week low of 1.0683 against the US dollar. If the aussie falls further, it may likely target 1.065 against the greenback and 86.5 against the yen. The aussie-greenback and the aussie-yen pairs were worth 1.0734 and 87.78, respectively at Friday's close.
The Australian dollar is trading at a 4-day low of 1.2353 against the euro, compared to last week's close of 1.2301. On the downside, 1.238 is seen as the next target level for the aussie.
Looking ahead, Eurozone Sentix investor confidence for March and retail sales for January are expected at 4:30 am and 5 am ET, respectively.
Across the Atlantic, the U.S. factory goods orders for January and the ISM non-manufacturing index for February are due for release in the New York morning session.


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