Aussie, N.Z. Dollars Fall Versus Majors Before PMI Data

The Australian and New Zealand dollars declined versus most of their major peers before reports that may show global manufacturing is struggling to recover, weighing on risk appetite.

The currencies dropped as Asian stocks declined ahead of purchasing managers indexes data due tomorrow in Europe and China. The so-called Aussie and kiwi slipped against the greenback before the Federal Reserve releases minutes of its latest policy meeting. Demand for the South Pacific nations’ dollars was supported prior to meetings this week between Europe’s leaders amid speculation they can agree on steps to contain the region’s debt crisis.

“Markets may at some point in time here get a little disappointed that the policy initiatives to date are just not doing their job in righting the ship,” said Gavin Stacey, chief rate strategist in Sydney at Barclays Plc. “That mindset obviously would tend to reverse all the recent directional shifts in the market, including a bit of buoyancy in the Australian dollar.”

via Bloomberg

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