The New Zealand dollar fell as fears over China's financial sector re-emerged on reports a troubled trust product won't be bailed out, ahead of economic data which is expected to show the world's second-biggest economy is still growing, albeit at a slower pace.
The kiwi fell to 82.46 US cents at 8am from 82.62 cents at the close of trading in New York on Friday, and 82.99 cents at 5pm in Wellington. The trade-weighted index dropped to 78.40 from 78.78 last week.
China's economy grew at an annual pace of 7.6 percent in the fourth quarter, according to a Reuters poll of economists, slowing from 7.8 percent in the previous quarter.
Traders will be monitoring the strength of the gross domestic product, industrial production and retail sales data after media reports that Industrial & Commercial Bank of China is refusing to bail out a troubled 3 billion yuan trust product reignited fears over the stability of the nation's financial system.
"Market chatter is talking about credit conditions in China and increasing concerns over the shadow banking sector," said Sam Tuck, senior FX strategist at ANZ New Zealand in Auckland. "If the Chinese data comes in softer, the Aussie and kiwi will struggle."
