The New Zealand dollar declined ahead of economic data due out of China today which is expected to show weaker growth in the country's largest trading partner.
The kiwi edged lower to 67.95 US cents at 8am in Wellington, from 68.08 cents at the New York close and 68.32 cents on Friday. The trade-weighted index slipped to 72.74 from 73.04 on Friday.
Chinese data on retail sales, industrial production, fixed-asset investment and gross domestic product are the main focus for traders today. Chinese third-quarter growth is expected to have slowed to an annual pace of 6.8 percent from 7 percent in the second quarter, which would be the slowest since the financial crisis in 2009. A weaker reading would likely weigh on the kiwi and the Aussie currencies given the exposure of the two countries to Asia's largest economy.
Chinese policymakers had previously forecast growth of "around 7 percent" for 2015. China's Premier Li Keqiang said that with the global economic recovery losing steam, achieving domestic growth of around 7 percent is "not easy", according to a transcript of his remarks posted on the website of the State Council, China's cabinet, and reported by Reuters at the weekend.
"While we know that the reports will not show dramatic slowdown in the Chinese economy, even a mild deterioration could trigger a wave of risk aversion in currencies," Kathy Lien, managing director of FX strategy for BK Asset Management in New York, said in a note.
