Aussie Slips Before Factory Data Amid Oil Rout as Gold Tumbles

Dec. 1 (Bloomberg) — The Australian dollar slid to a more than four-year low and New Zealand’s currency also weakened before a slew of global manufacturing data. Gold extended losses after Switzerland voted against requiring the central bank to maintain a portion of its assets in the precious metal.

The Aussie lost 0.3 percent to 84.78 U.S. cents by 7:27 a.m. in Tokyo, touching its lowest level since July 2010. The kiwi fell 0.2 percent in a third day of losses. The Swiss franc was little changed at 1.20345 francs per euro as gold dropped 0.5 percent to $1,167.15 an ounce in the spot market. New Zealand stocks rose 0.2 percent after the Standard & Poor’s 500 Index fell 0.3 percent Nov. 28, trimming its weekly advance to 0.2 percent. U.S. oil tumbled 10 percent to $66.15 a barrel Nov. 28 as investors digested OPEC’s refusal to cut output.

Gauges of manufacturing for China, Japan and the euro area are due today, along with reports on the sector in the U.S., where normal trading resumes after Thanksgiving. China floated plans for an insurance system on bank deposits yesterday, as part of its move toward a market-driven economy. Swiss voters in a referendum rejected a measure requiring their central bank hold at least 20 percent of its balance sheet in gold. South Korea reports on trade today and Indonesia updates on inflation.

“The official Chinese, European and U.S. purchasing managers’ indexes today will set direction, with expectations of an underwhelming result,” Sharon Zollner, a senior economist in Auckland at ANZ Bank New Zealand Ltd., wrote in a note e-mailed to clients. “With oil prices still cratering, markets are reluctant to buy any currency that’s associated with commodities.”

Commodity Currencies

The Aussie dropped to as low as 84.49 U.S. cents, after sinking 3.3 percent versus the dollar last month. The kiwi slipped to 78.25 U.S. cents after Reserve Bank of New Zealand Governor Graeme Wheeler said the real effective exchange rate is unjustified.

Currencies of commodity-linked nations drove declines against the greenback last week, with the Norwegian krone, Mexican peso, Canadian dollar and South African rand all down at least 1 percent. The Bloomberg Dollar Spot Index, which tracks the dollar against 10 major peers, climbed 2.4 percent in November for a fifth straight month of gains, amid speculation the recovery in the U.S. economy will spur the Federal Reserve to raise key interest rates next year.

The euro was little changed at $1.2452 before the release of Markit Economics’ manufacturing PMI on the area. Inflation in the 18-nation region slowed in November to match a five-year low, data Nov. 28 showed, boosting prospects the European Central Bank may have to further expand its stimulus program to avoid deflation.

China PMIs

The yen was down a second day, losing 0.2 percent to 118.87 per dollar after sinking 0.8 percent Nov. 28. Company profits and vehicle sales are due today in Japan, along with the Markit/JMMA Japan manufacturing PMI.

Two indexes of Chinese factory production are scheduled for today, with economists surveyed by Bloomberg projecting the official PMI for November will drop to 50.5, from 50.8 in October. A preliminary reading on the HSBC Holdings Plc/ Markit China manufacturing PMI for last month saw the gauge drop to 50, the lowest level since May. Readings above 50 indicate expansion.

Data on manufacturing is also due for India, South Korea, Taiwan, Vietnam and Indonesia as well as a raft of European nations. U.S. factory gauges from Markit and the Institute for Supply Management are scheduled, with investors also focused on the monthly payrolls data due at the end of the week.

Gold, Oil

Gold sank as much as 0.6 percent today, to $1,160.23 an ounce on the spot market, its lowest intraday level since Nov. 14. The metal, used as a hedge against inflation, fell 0.5 percent in November for a third straight monthly retreat. The Bloomberg Commodity Index tumbled 3.9 percent at the end of last week, dropping to the lowest level since April 2009.

West Texas Intermediate crude plunged more than 13 percent last week as members of the Organization of Petroleum Exporting Nations refrained from reducing their output limit amid sliding oil prices globally. WTI is down 33 percent this year and has collapsed into a bear market amid slowing demand.

The ruble dropped 3.6 percent Nov. 28 to a record-low 50.4085 per dollar, capping its worst month in more than five years. Russia is the world’s biggest energy exporter.

U.S. stocks were mixed Nov. 28, with the Nasdaq 100 Index climbing 0.5 percent while the Russell 2000 Index, which tracks small-cap shares, sank 1.5 percent. The Dow Jones Industrial Average was little changed at a record 17,828.24.

Futures on Australia’s S&P/ASX 200 Index slipped 0.8 percent in most recent trading Nov. 29, while contracts on the Kospi index in Seoul dropped 0.2 percent. Futures on Japan’s Nikkei 225 Stock Average were unchanged at 17,450 in Osaka after the index rose 0.6 percent last week. Contracts on the Hang Seng China Enterprises Index fell 0.3 percent.

–With assistance from Michael P. Regan in New York.

To contact the reporter on this story: Emma O’Brien in Wellington at [e-mail] To contact the editors responsible for this story: Emma O’Brien at [e-mail] Tracy Withers