The Australian dollar fell for the first time in three days against its U.S. counterpart amid a decline in risk appetite as China’s industrial output rose the least in three years and investors expressed concern whether Europe’s debt crisis is being contained. The Aussie also declined as Chinese imports slid, further damping the outlook for economic growth. New Zealand’s dollar declined for the first time in four days versus the greenback amid skepticism the Federal Reserve will add stimulus at a meeting this week. Stocks fell. Australia’s currency depreciated 0.5 percent to $1.0335 yesterday in New York. It fell 0.4 percent to 80.910 yen after reaching 80.88 yen. The New Zealand dollar, nicknamed the kiwi, decreased 0.5 percent to 80.86 U.S. cents. The kiwi weakened 0.4 percent to 63.32 yen. New Zealand’s central bank will probably hold the official cash rate at a record-low 2.5 percent at a Sept. 13 meeting, according to the majority of a nine-member panel of economists, academics and company executives. survey of 16 economists was for approvals to stagnate. China’s imports slid 2.6 percent in August from a year earlier as exports rose 2.7 percent, the customs bureau said in Beijing. Production increased 8.9 percent, the National Bureau of Statistics said. President Hu Jintao said Sept. 8 that China’s economic expansion faces “notable downward pressure.� China is Australia’s biggest trade partner and the second biggest destination of New Zealand’s exports. The U.S. central bank opens a two-day policy meeting tomorrow. The Standard & Poor’s 500 Index (SPX) dropped 0.6 percent. Greece’s coalition failed to reach a deal on 11.5 billion euros ($14.7 billion) of spending cuts. A German court will rule on the nation’s participation in Europe’s permanent bailout fund in two days. To contact the reporter on this story: Joseph Ciolli in New York at jciolli@bloomberg.net To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net

Source