Commodity Currencies Fall As Asian Stock Markets Traded Lower
August 07 2017 - 9:55PM
RTTF2
Commodity currencies such as the Australian, the New Zealand,
and the Canadian dollar weakened against their major counterparts
in the Asian session on Tuesday, as Asian stock markets traded
lower with some of the markets reversing early gains as investors
digested the release of China's trade data for the month of July,
with the export and import figures falling short of analysts'
expectations.
Data from the General Administration of Customs showed that
China's trade surplus increased in July despite a slowdown in
exports growth. Exports increased 7.2 percent year-on-year in July.
Imports grew 11 percent but weaker than June's 17.2 percent
expansion. Economists had forecast a faster growth of 18
percent.
Consequently, the trade surplus widened to $46.7 billion in July
from $42.7 billion in June. This was also above the expected level
of $45 billion.
Meanwhile, the crude oil delivery for September is down by 0.09
percent or $49.30 per barrel. The crude oil futures fell after a
recovery in output at Libya's largest oil field and as oil
exporters met to discuss a deal to limit output.
In the Asian trading, the Australian dollar fell to 1.4922
against the euro, 0.7913 against the U.S. dollar and 87.52 against
the yen, from early highs of 1.4888, 0.7939 and 87.84,
respectively. If the aussie extends its downtrend, it is likely to
find support around 1.50 against the euro, 0.77 against the
greenback and 86.00 against the yen.
Against the New Zealand and the Canadian dollars, the aussie
dropped to 1.0759 and 1.0025 from an early near 3-week highs of
1.0779 and 1.0049, respectively. The aussie may test support near
1.05 against the kiwi and 0.99 against the loonie.
The NZ dollar fell to a 2-1/2-month low of 1.6065 against the
euro and nearly a 1-1/2-month low of 81.31 against the yen, from
yesterday's closing quotes of 1.6019 and 81.52, respectively. If
the kiwi extends its downtrend, it is likely to find support around
1.63 against the euro and 80.00 against the yen.
Against the U.S. dollar, the kiwi dropped to 0.7351 from
yesterday's closing value of 0.7363. The kiwi may find support near
the 0.72 region.
The Canadian dollar fell to 1.2672 against the U.S. dollar and
87.27 against the yen, from early highs of 1.2653 and 87.46,
respectively. If the loonie extends its downtrend, it is likely to
find support around 1.30 against the greenback and 86.00 against
the yen.
Against the euro, the loonie dropped to 1.4966 from yesterday's
closing value of 1.4954. The loonie is likely to find support near
the 1.51 region.
Looking ahead, U.S. NFIB small business index and Canada housing
starts data, both for July, are due to be released in the New York
session.
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