Commodity Currencies Slide As Asian Stock Markets Traded In Negative Territory
August 02 2017 - 9:52PM
RTTF2
Commodity currencies such as the Australian, the New Zealand and
the Canadian dollars weakened against their major counterparts in
the Asian session on Thursday, as Asian stock markets traded in
negative territory following the mixed cues overnight from Wall
Street, where the Dow Jones Industrial Average closed above the
22,000 level for the first time.
Investors are cautious ahead of the Bank of England's interest
rate decision due later in the day and Friday's U.S. jobs data.
In other economic news, data from the Australian Bureau of
Statistics showed that Australia posted a seasonally adjusted
merchandise trade surplus of A$856 million in June, down 58 percent
on month. The headline figure was well shy of forecasts for a
surplus of A$1.80 billion and down sharply from the A$2.471 billion
surplus in May.
Exports were down A$439 million or 1.0 percent on month to
A$31.779 billion. Imports gained A$730 million or 2.0 percent to
A$30.923 billion.
Data from the Australian Industry Group showed that the service
sector in Australia continued to expand in July, and at an
accelerated rate, with a Performance of Service Index score of
56.4. That's up sharply from 54.8 in June,
Data from ANZ showed showed that New Zealand's job
advertisements decreased in July, after rebounding in the previous
month. Total job ads fell a seasonally adjusted 1.0 percent
month-over-month in July, reversing a 1.3 percent rise in June.
Data from Caixin showed that the services sector in China
continued to expand in July, albeit at a fractionally slower pace,
with a PMI score of 51.5. That's down slightly from 51.6 in
June.
The composite index moved to a four-month high of 51.9 in July
after showing 51.1 in the previous month.
Wednesday, the Australian, the New Zealand and the Canadian
dollars had fallen against their major counterparts. The Australian
dollar fell 0.03 percent against the U.S. dollar, 0.29 percent
against the yen and 0.43 percent against the euro. The NZ dollar
fell 0.52 percent against the U.S. dollar, 0.19 percent against the
yen and 0.93 percent against the euro. The Canadian dollar fell
0.31 percent against the U.S. dollar, 0.07 percent against the yen
and 0.74 percent against the euro.
In the Asian trading, the Australian dollar fell to more than a
3-week low of 1.4957 against the euro and more than a 2-week low of
87.59 against the yen from yesterday's closing quotes of 1.4879 and
88.22, respectively. If the aussie extends its downtrend, it is
likely to find support around 1.51 against the euro and 86.00
against the yen.
Against the U.S. and the Canadian dollars, the aussie dropped to
an 8-day low of 0.7914 and a 2-day low of 0.9962 from yesterday's
closing quotes of 0.7966 and 1.0014, respectively. It may test
support near 0.77 against the greenback and 0.98 against the
loonie.
The aussie edged down to 1.0700 against the NZ dollar, from an
early 2-week high of 1.0746. On the downside, 1.05 is seen as the
next support level for the aussie.
The NZ dollar fell to more than a 2-month low of 1.6017 against
the euro, from yesterday's closing value of 1.5957. The kiwi may
test support near the 1.62 region.
Against the U.S. dollar and the yen, the kiwi dropped to a
2-week low of 0.7392 and more than a 2-week low of 81.78 from
yesterday's closing quotes of 0.7429 and 82.26, respectively. If
the kiwi extends its downtrend, it is likely to find support around
0.72 against the greenback and 80.00 against the yen.
The Canadian dollar fell to nearly a 2-week low of 1.2596
against the U.S. dollar, from yesterday's closing value of 1.2568.
The loonie is likely to find support near the 1.28 region.
Against the euro and the yen, the loonie dropped to 1.4924 and
87.81 from yesterday's closing quotes of 1.4901 and 88.09,
respectively. If the currency extends its downtrend, it is likely
to find support around 1.51 against the euro and 85.00 against the
yen.
Looking ahead, PMI reports from major European economies for
July and Eurozone retail sales data for June are due to be released
later in the day.
At 7:00 am ET, the Bank of England will announce its monetary
policy decision. The bank is expected keep benchmark interest rate
at 0.25 percent and asset purchase program at GBP 435 billion.
In the New York session, U.S. weekly jobless claims for the week
ended July 29, Markit's U.S. PMI reports for July, U.S. factory
orders and durable goods orders for June are slated for
release.
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