Australian, New Zealand Dollars Fall Before Unemployment Data

By Candice Zachariahs

Dec. 11 (Bloomberg) -- The Australian and New Zealand dollars fell before a report that may show Australia’s jobless rate rose to a one-year high last month and on concern U.S. lawmakers may fail to pass a rescue plan for the auto industry.

The currencies were also lower after exports from China, Australia’s largest trading partner, fell for the first time in seven years yesterday, pointing to a further slump in demand for commodities. Raw materials account for 60 percent of Australia’s exports and 70 percent of New Zealand’s overseas shipments.

“There’s a lot of volatility in the markets with everybody waiting to see what’s going to happen with the unemployment data today,” said Charles Wiggins, corporate risk manager at Custom House Global Foreign Exchange in Sydney. The Australian dollar will be supported at 65.20 U.S. cents and may rise toward 66.80 cents on better-than-expected jobs figures, he said.

Australia’s currency fell 0.2 percent to 65.67 U.S. cents as of 8:15 a.m. in Sydney from 65.77 cents late in Asia yesterday. The currency declined 0.2 percent to 60.83 yen.

New Zealand’s dollar slipped 0.1 percent to 54.34 U.S. cents from 54.39 in Asia yesterday. It bought 50.34 yen from 50.44.

Australia’s unemployment rate will rise to 4.4 percent, the highest level since November 2007, from 4.3 percent, according to economists surveyed by Bloomberg before the statistics bureau report at 11:30 a.m. today. The number of people employed are forecast to have fallen by 15,000 after gaining 34,300 in October.

The currencies fell today as U.S. equities swung between gains and losses on concern a $15-billion rescue package for the U.S. auto industry lacks enough support to pass the Senate.

They were also lower after China yesterday said exports declined 2.2 percent in November from a year earlier. Imports plunged 17.9 percent, pushing the trade surplus to a record $40.09 billion.

Reserve Bank of Australia Governor Glenn Stevens said Dec. 9 that economic growth slowed “more quickly than anyone had forecast” in China.

“Given the global situation, we have a very difficult period to negotiate,” he said.

To contact the reporter on this story: Candice Zachariahs in Sydney at czachariahs2@bloomberg.net