Australian Dollar Slides On Weak China Data
December 09 2019 - 1:40AM
RTTF2
The Australian dollar weakened against its major trading
partners during European trading on Monday amid risk aversion, as
weak exports data from China underscored persistent pressures on
manufacturers from the prolonged Sino-U.S. trade war.
China's exports shrank for the fourth consecutive month in
November, in a sign that the trade war with the United States was
having an impact on the world's second-largest economy.
Investors awaited key events this week, including the Federal
Reserve's latest interest rate decision, new ECB boss Christine
Lagarde's first policy meeting and the U.K. general election.
In an interview with France 3 television, French Finance
Minister Le Maire said that France was ready to challenge U.S.
President Trump's tariffs threat at the World Trade Organization
(WTO).
"We are ready to take this to an international court, notably
the WTO, because the national tax on digital companies touches U.S.
companies in the same way as EU or French companies or Chinese. It
is not discriminatory."
The currency held steady against its major counterparts in the
previous session. The aussie dropped to a 4-day low of 0.6822
against the greenback, from a high of 0.6839 hit at 6:45 pm ET. The
aussie is likely to locate support around the 0.67 level.
The aussie depreciated to 74.00 against the yen, setting a 5-day
low. Next key support for the aussie is seen around the 72.5
level.
Data from the Cabinet Office showed that Japan's gross domestic
product was bumped all the way up to a seasonally adjusted
annualized 1.6 percent in the third quarter of 2019.
That was a sharp upward move from the 0.2 percent gain
originally reported last month for Q3.
The aussie reached as low as 1.6230 against the euro, after
climbing to 1.6169 at 5:45 pm ET. The aussie is seen challenging
support around the 1.65 level.
The aussie slipped to 1.0406 against the kiwi, down from a high
of 1.0429 seen at 10:45 pm ET. Should the aussie falls further,
1.02 is seen as its next support level.
The Australian currency edged lower to 0.9045 against the
loonie, compared to Friday's closing value of 0.9064. The next
possible support for the aussie is seen around the 0.88 mark.
Looking ahead, at 8:15 am ET, Canada housing starts data for
November is scheduled for release.
Fifteen minutes later, Canada building permits for October will
be featured.
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