Monday, 14 January 2019 16:03 WIB |
The Australian dollar and kiwi dollar, gauges of global risk appetite, fell on Monday on fears of a slowdown in China's economy prompted by a contraction in Chinese exports.
Market sentiment swung negative after data showed that China's December exports unexpectedly fell, pointing to weakness in the world's second-largest economy and a gloomy growth picture.
The data took its toll on the Australian dollar and New Zealand dollar, which both fell more than 0.4 percent.
China is Australia's largest trade partner and negative sentiment about its economy does not bode well for the Aussie dollar.
Fears of a Chinese slowdown also hit the offshore yuan.
The currency rallied 1.5 percent against the dollar last week, its biggest weekly rise since January 2017, seemingly incongruent with recent sluggishness in China's economy.
Monday's risk-off mood led traders to buy the safe-haven Japanese yen, which rose 0.4 percent versus the greenback.
The dollar index was at 95.56, down 0.1 percent.
The euro on Monday was relatively unchanged at $1.1466. The single currency lost 0.3 percent on Friday after data showed that Italy, the euro zone's third-largest economy, was at risk of recession.
Elsewhere, the British pound was marginally lower at $1.2826 at the start of what is expected to be a highly volatile week.