Australia's dollar fell against the yen for a fourth day before a report tomorrow forecast to show the country's unemployment rate rose in October.
The dollar slid against most of their 16 major counterparts after growth slowed in China's consumer prices and industrial production. Declines in the currencies had been limited after Italy's Prime Minister Silvio Berlusconi offered to quit once Parliament approves austerity plans, easing concern Europe's debt crisis will worsen.
"While the Aussie did get a little bit of lift this morning following the news of the Italian prime minister's resignation, the markets are still somewhat cautious over the potential for tomorrow's employment report," said Khoon Goh, head of market economics and strategy at ANZ National Bank in Wellington. "If we get a weaker print in employment, I expect that to weigh quite heavily on the Aussie currency."
Australia's dollar dropped 0.6 per cent to 80.32 yen from 80.78 yen yesterday in New York, when it declined 0.3 per cent. The currency fell 0.4 per cent to $US1.0352. The New Zealand dollar, known as the kiwi, lost 0.6 per cent to 61.7 yen from yesterday, when it weakened 0.3 per cent. It slid 0.4 per cent to 79.49 U.S. cents.
The unemployment rate in Australia rose to 5.3 per cent in October from 5.2 per cent the previous month, according to the median forecast of economists in a Bloomberg News survey before the figures are released tomorrow.
Chinese economy
China's consumer prices climbed 5.5 per cent in October from a year earlier, compared with a 6.1 per cent gain the previous month, the National Bureau of Statistics said. Industrial output rose 13.2 per cent in October, less than the 13.4 per cent median estimate in a Bloomberg survey and down from a 13.8 per cent gain the previous month.
"The market will look at CPI, but the focus will be more on how much the economy will slow and how much the property prices will come off" in China, said Lee Wai Tuck, a currency strategist at Forecast Pte in Singapore. China's "demand for Australia's commodities and resources is likely to fall, so that is weighing on the Aussie dollar."
Losses in the South Pacific nations' currencies had been limited after Italian President Giorgio Napolitano said in an e- mailed statement yesterday that he'd received Berlusconi's offer to resign once Parliament passes austerity measures in a vote next week. The government has yet to present the final text of the amendment to the budget law with the austerity measures.
Australia's government bonds declined, with yields on 10-year debt rising one basis point to 4.22 per cent.
New Zealand's two-year swap rate, a fixed payment made to receive floating rates, fell two basis points to 3.0575 per cent, the lowest since Oct. 6. A basis point is 0.01 percentage point.