SYDNEY: The Australian and New Zealand dollars hovered near lows on Tuesday and looked vulnerable amid renewed concerns about the health of China’s economy.
The Australian dollar held at $0.6953, having touched a 6-1/2-year trough of $0.6892 on Monday. It regained modest ground against the yen at 82.80, from a three-year low of 81.85 yen.
Investors remained edgy after China’s trade figures showed further signs of a slowdown in the Asian giant. China is Australia’s top export market.
The Aussie has tumbled 12 cents this year, in large part due to heightened concerns about a possible hard landing for the Chinese economy.
Technicals suggest further retracement with speculators extremely short on the local currency on expectations the Federal Reserve could hike rates as early as next week. Major support was found around $0.6850-70.
At home, Australian business conditions improved in August as both trading and profitability grew, yet confidence took a hit, a survey showed on Tuesday.
