Aussie, Kiwi Slide Against Rivals


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The value of South Pacific dollars dropped against rival currencies on Wednesday, pulled down as stocks in Asia withdrew as strong-performing assets' allure slipped, according to Bloomberg.

The New Zealand and Australian dollars are hurtling to their first monthly drop of 2012 and both have been burdened by preoccupations about the reduced pace of manufacturing. The Aussie notched its weakest value since October of last year against the Kiwi in anticipation of a report projected to indicate annual growth of Australian bank lending touched its slowest pace since August of last year.

"A drop in Asian stocks is a negative catalyst for the South Pacific nations' currencies," researcher Takuya Kawabata with Research Institute in Tokyo told Bloomberg. "We'd like to be cautious about a Chinese slowdown because it weighs on Australia's dollar."

Dow Jones Newswires reports U.S. stock markets ' performance also pulled down the value of the Aussie.

The Reserve Bank of Australia indicated on Wednesday that business failures and defaults on financial obligations presently are higher than normal levels while also noting local lenders are staking out solid positions, Dow Jones Newswires reports.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: News Headlines , Business

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