SYDNEY, Oct 13 — The Australian dollar fell, halting the longest rally in more than six years, as Chinese trade data added to concern the world’s second-largest economy is slowing.

The Aussie weakened for the the first time in 10 days versus the greenback as an commonly used gauge of momentum signaled the currency’s rally was the most vulnerable to reversal at any time in the past 18 months.

New Zealand’s dollar dropped for the first time in 11 days.

China is the major trading partner for both Australia and New Zealand.

“China’s data momentum remains weak,” said Sean Callow, a currency strategist at Westpac Banking Corp in Sydney.

“Do you want to start buying the Australian dollar near 74 cents (RM2.30) ahead of China’s September or third-quarter data deluge? Probably not.”

Australia’s dollar tumbled 0.6 per cent to 73.18 US cents as of 7:27am in London after strengthening 5.4 per cent during the previous nine days, the longest winning streak since March 2009.

New Zealand’s currency slumped 0.5 per cent to 66.88 US cents after surging 6.2 per cent since September 28 through yesterday.

China’s custom’s administration said imports slumped for an 11^th month in September, sliding 17.7 per cent in yuan terms from a year earlier.

Exports fell 1.1 per cent, compared with a 6.1 per cent decline the previous month.

Underlying trend

The Aussie had surged in the previous nine days to reach 73.82 US cents yesterday as traders pushed back forecasts for when the Federal Reserve will raise interest rates, boosting demand for higher-yielding assets.

“The more markets rally, the greater the likelihood that the Fed considers again raising rates: that makes me cautious still about the Australian dollar’s underlying trend,” said Mansoor Mohi-uddin, a senior markets strategist at Royal Bank of Scotland Group Plc in Singapore.

“China’s domestic data releases may also remind investors about risks from the world’s second- largest economy continuing to slow.”

The Australian dollar’s 14-day relative-strength index climbed to 71 yesterday, above the level of 70 that some traders see as a signal it has risen too far, too fast.

The last time it was above that level was in April 2014.

The Australian and New Zealand dollars were also weighed down by a drop in crude oil futures below US$50 per barrel, said Satoshi Okagawa, global market analyst at Sumitomo Mitsui Banking Corp in Singapore.

The two currencies were unlikely to extend the recent gains as demand for commodities remains subdued in China and other emerging economies, he said. — Bloomberg