Australian, Canadian Dollars Fall On Oil Price Slide
October 19 2016 - 9:08PM
RTTF2
The Australian and the Canadian dollars weakened against their
major counterparts in the Asian session on Thursday, as the crude
oil prices fell after a strong rally in the previous day.
Crude for the December delivery is currently down 0.19 percent
or $51.63 per barrel.
The Organization of the Petroleum Exporting Countries (OPEC) is
scheduled to meet on November 30 to discuss about oil production
cut for stabilizing the oil market.
The oil prices rose on Wednesday, as official data confirmed
U.S. inventories fell unexpectedly last week. The U.S. Energy
Information Administration reported that domestic crude supplies
dropped by 5.2 million barrels in the week ended Oct. 14.
Saudi Arabia's oil minister Khalid al-Falih said certain
non-OPEC countries will join OPEC and Russia in curbing supplies,
also supported the investor sentiment.
The Australian dollar retreated against its major rivals, as
traders bet that the the Reserve Bank of Australia is likely to cut
its interest rates in November on the back of surprise drop in
jobs.
Data from the Australian Bureau of Statistics showed that the
the Australian economy lost 9,800 jobs last month, well shy of
expectations for an increase of 15,000 following the loss of 8,600
jobs in August. Full-time employment fell by 53,000 persons, while
part-time employment increased by 43,200 persons.
The unemployment rate in Australia was a seasonally adjusted 5.6
percent in September. That was beneath forecasts for 5.7 percent,
which would have been unchanged from the previous month following a
revision from 5.6 percent.
Wednesday, the Australian and the Canadian dollars showed mixed
trading against their major rivals. The aussie and the loonie rose
against the U.S. dollar and the yen. Against the yen, the aussie
held steady and the loonie fell.
In the Asian trading, the Australian dollar fell to 0.7677
against the U.S. dollar and 79.45 against the yen, from an early
more than a 2-month high of 0.7734 and a 2-day high of 80.01,
respectively. If the aussie extends its downtrend, it is likely to
find support around 0.75 against the greenback, and 78.00 against
the yen.
Against the euro and the Canadian dollar, the aussie dropped to
1.4290 and 1.0094 from an early near 1-1/2-year high of 1.4184 and
nearly a 1-year high of 1.0158, respectively. The aussie may test
resistance around 1.45 against the euro, and 0.99 against the
loonie.
The Canadian dollar fell to a 3-day low of 1.3146 against the
U.S. dollar and a 2-day low of 1.4425 against the euro, from
yesterday's closing quotes of 1.3114 and 1.4389, respectively. If
the loonie extends its downtrend, it is likely to find support
around 1.34 against the greenback and 1.47 against the euro.
Against the yen, the loonie dropped to 78.76 from yesterday's
closing value of 78.87. The loonie is likely to find support around
the 76.00 region.
Looking ahead, Swiss trade balance for and German PPI, both for
September, are due to be released at 2:00 am ET, respectively.
Eurozone current account data for August and U.K. retail sales
data for September are slated for release later in the day.
The European Central bank will announce its interest rate
decision at 7:45 am ET. The bank is forecast to keep its refi rate
at zero percent and the deposit rate at -0.4 percent.
Following the announcement, European Central Bank President
Mario Draghi will hold the customary post-meeting press
conference.
In the New York session, U.S. weekly jobless claims for the week
ended October 15, U.S. existing home sales data, leading
indicators, for September, and U.S. Philly Fed manufacturing index
for October are set to be published.
At 8:00 am ET, Bank of England Deputy Governor Nemat Shafik is
expected to participate in a panel discussion about reform in the
financial services industry at the Federal Bank of New York's
conference.
At 8:30 am ET, Federal Reserve Bank of New York President
William Dudley is scheduled to give welcome remarks at a conference
entitled "Reforming Culture and Behavior in the Financial Services
Industry: Expanding the Dialogue", in New York.
European Union leaders summit is due to be held in Brussels,
later in the day.
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