AVN 64.89 Decreased By ▼ -0.06 (-0.09%)
BAFL 30.99 Decreased By ▼ -0.52 (-1.65%)
BOP 4.82 Increased By ▲ 0.03 (0.63%)
CNERGY 3.83 Decreased By ▼ -0.01 (-0.26%)
DFML 14.55 Increased By ▲ 0.14 (0.97%)
DGKC 41.60 No Change ▼ 0.00 (0%)
EPCL 46.90 Increased By ▲ 0.20 (0.43%)
FCCL 11.34 Increased By ▲ 0.05 (0.44%)
FFL 5.03 Decreased By ▼ -0.02 (-0.4%)
FLYNG 5.80 Decreased By ▼ -0.02 (-0.34%)
GGL 10.38 Decreased By ▼ -0.07 (-0.67%)
HUBC 66.82 Increased By ▲ 1.18 (1.8%)
HUMNL 5.62 Decreased By ▼ -0.04 (-0.71%)
KAPCO 27.85 Increased By ▲ 0.10 (0.36%)
KEL 2.17 Increased By ▲ 0.02 (0.93%)
LOTCHEM 24.70 Increased By ▲ 0.35 (1.44%)
MLCF 21.60 Increased By ▲ 0.12 (0.56%)
NETSOL 84.25 Decreased By ▼ -0.54 (-0.64%)
OGDC 85.85 Decreased By ▼ -1.40 (-1.6%)
PAEL 11.09 Increased By ▲ 0.11 (1%)
PIBTL 4.20 Decreased By ▼ -0.02 (-0.47%)
PPL 74.55 Decreased By ▼ -1.15 (-1.52%)
PRL 13.55 Decreased By ▼ -0.10 (-0.73%)
SILK 0.89 No Change ▼ 0.00 (0%)
SNGP 40.95 Decreased By ▼ -0.38 (-0.92%)
TELE 5.85 No Change ▼ 0.00 (0%)
TPLP 15.66 Increased By ▲ 0.02 (0.13%)
TRG 112.28 Increased By ▲ 0.58 (0.52%)
UNITY 13.79 Decreased By ▼ -0.19 (-1.36%)
WTL 1.17 Increased By ▲ 0.01 (0.86%)
BR100 4,060 Decreased By -4.4 (-0.11%)
BR30 14,453 Decreased By -15.2 (-0.1%)
KSE100 40,649 Decreased By -84.4 (-0.21%)
KSE30 15,236 Increased By 6.3 (0.04%)
Markets

Australia, NZ dollars softer as sentiment blunted by China's regulatory crackdown

  • The Aussie was 0.04% lower at $0.7343 as a recent survey showed factory activity in China grew at the slowest pace in 17 months in July
Published August 2, 2021
Follow us

SYDNEY: The Australian and New Zealand dollars hovered on Monday near recent lows against the greenback as fears that China's regulatory crackdown could slow investment flows and even its economy dogged the risk-sensitive currencies.

The Aussie was 0.04% lower at $0.7343 as a recent survey showed factory activity in China grew at the slowest pace in 17 months in July.

That leaves the currency's next support levels at about $0.7317, in the vicinity of its July trough of $0.7289.

New Zealand dollar buoyed by yield surge, Aussie lags behind

"A more broad-based regulatory crackdown will likely accelerate foreign equity investment outflow from China and lead to a weaker CNH," Commonwealth Bank of Australia analysts said.

"Significant weakness in CNH can also weigh on AUD, because of its role as a proxy for emerging Asia."

Constantly shifting outbreaks of coronavirus and accompanying restrictions are also expected to keep pressure on the Aussie, with the Reserve Bank of Australia on Tuesday expected to reverse last month's decision to taper its weekly bond-buying programme.

The New Zealand dollar was also faltering, down 0.34% at $0.6953, its lowest since July 29, before recovering to stand at $0.6964. It faces stiff resistance at $0.7015 and $0.7050.

But traders expect second-quarter labour market data due on Wednesday to be a potential catalyst for gains in the kiwi if it adds pressure to the Reserve Bank of New Zealand to hike rates this month.

"The labour market report in New Zealand is expected to provide the final ammunition for the RBNZ to hike in August, while the RBA is expected to reverse its plans for taper amid a sharp slowing in the economy," said Richard Yetsenga, chief economist of Australia and New Zealand Banking Group.

Australian bonds were little changed, with the yield on the 10-year government benchmark one basis point lower at 1.179%. The three-year bond yield was also little changed, at 0.25%.

Across the Tasman Sea, New Zealand bonds were a little weaker, pushing yields one basis point higher across the curve.

Comments

Comments are closed.

Australia, NZ dollars softer as sentiment blunted by China's regulatory crackdown

Intra-day update: rupee falls further against US dollar

Saudi Arabia links oil refinery’s setup with political consensus

Panel asks PD to broker agreements between govt, gas producing provinces

Rules notified: FBR, banks can share info about civil servants’ assets

India’s Adani denies rise due to Modi as shares slump again

Chinese spy balloon flies over the United States, Pentagon says

Smuggling not the main reason behind USD shortage: FBR

Dar approves proposal to raise $2bn from expats

1,100MW K-3 inaugurated, China praised

PM invites IK, others to APC on terrorism, economy