(Reuters) A contraction in Chinese exports engendered fears of a slowdown in the world’s second-largest economy, sparking a risk-off move Monday which hurt the Australian and New Zealand dollars, gauges of global risk appetite.
The data took its toll on the Australian dollar, which was down 0.24 percent, and kiwi dollar, which was down 0.12 percent. China is Australia’s largest trade partner and negative sentiment about its economy bodes ill for the Aussie dollar.
“The biggest theme (in the market today) is ‘risk-off.’ The soft Chinese data sparked the sell-off and benefited the Japanese yen and at the cost of the Australian dollar,” said John Doyle, vice president of dealing and trading at Monex, Inc.
