The Australian and New Zealand dollars extended weakness against the other major currencies in the Asian session, as disappointing data on Chinese factory activity on Tuesday hit commodity prices.

Data from Markit showed a contraction in Chinese manufacturing activity. The HSBC/Markit manufacturing purchasing managers' index fell to 49.5 in December from November's final reading of 50.

Subsequently, commodity prices fell, and crude oil for January delivery is currently down $0.98 at $54.95 a barrel.

In the economic news, data from Westpac Bank and the Melbourne Institute showed that the outlook for Australia's economy continued to remain below trend in November. The leading index dropped to -0.47 percent in November from -0.15 percent in October.

Data from Statistics New Zealand showed that New Zealand had a seasonally adjusted current account deficit of NZ$2.5 billion in the third quarter of 2014. That follows the NZ$1.01 billion shortfall in the second quarter. Exports of goods fell NZ$380 million, while imports of goods added NZ$325 million.

On Tuesday, the Australian and New Zealand dollars were trading lower against their major rivals. The Australian dollar fell 0.35 percent against the euro and 1.10 percent against the yen. The NZ dollar fell 0.20 percent against the euro, 0.69 percent against the U.S. dollar and 0.48 percent against the yen.

In Asian trading today, the Australian dollar fell to a 4-1/2-year low of 0.8150 against the U.S. dollar and a 9-month low of 1.5322 against the euro, from yesterday's closing quotes of 0.8216 and 1.5216, respectively. If the aussie extends its downtrend, it is likely to find support around 0.80 against the greenback and 1.54 against the euro.

Against the Canadian dollar, the aussie slipped to a 6-day low of 0.9485 from yesterday's closing quote of 0.9552. On the downside, 0.93 is seen as the next support level for the aussie.

The aussie, which closed yesterday's deals at 95.64 against the yen, edged down to 95.31. It may test support near the 94.00 region.

The NZ dollar also fell to 0.7730 against the U.S. dollar and 90.33 against the yen from yesterday's closing quotes of 0.7795 and 90.74, respectively, in the Asian session. If the kiwi extends its downtrend, it is likely to find support around 0.76 against the greenback and 88.50 against the yen.

Against the euro, the kiwi fell to a 1-week low of 1.6154 from yesterday's closing quotes of 1.6030 and 90.74, respectively. Continuation of bearish trend may lead the greenback to a support around the 1.62 mark.

Looking ahead, Japan final machine tool orders for November is due to be released at 1:00 am ET.

In the European session, Eurozone final CPI data for November is due to be released.

In the New York session, Canada wholesale sales data for October and U.S. CPI for November and current account balance for the third quarter are due to be released.

At 2:00 pm ET, the Federal Reserve will announce its decision on monetary policy. The Fed is expected to hold rates at 0.25 percent. Subsequently, Fed Chair Janet Yellen holds a press conference following FOMC meeting on interest rate policy.

AUD vs US Dollar (FX:AUDUSD)
Forex Chart
From Feb 2024 to Mar 2024 Click Here for more AUD vs US Dollar Charts.
AUD vs US Dollar (FX:AUDUSD)
Forex Chart
From Mar 2023 to Mar 2024 Click Here for more AUD vs US Dollar Charts.